Hewlett Packard Company Deskjet Printer Supply Chain

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management solution which can maintain high inventory level. Through this method the budget for the inventory planning process can also be estimated.

Cons: The disadvantage of this method is the time duration is long for the planning and implementation process. The cost of planning will also be very high which can affect the competitiveness of the organization.

- Building a factory in Europe:

Pros: Through this method the risk associated with the above two alternatives like the increase in air freight charges, weather changes, time duration etc. can be eliminated.

Cons: But the cost of building the factory will be high. The organization will have to face the political and legal issues before getting into construction program.

Inventory Analysis:

Europe Options Monthly Mean Monthly Standard Deviation Coefficient of Variation Weekly Mean Weekly Std Deviation Mean LT Weeks Std Dev Expense Demand Safety Factor Safety Stock Safety Stock Week of Supply

A 42 32 0.76 10 16 5.0 39 2.18 85 8.5

AA 420 204 0.49 97 98 5.0 240 2.01 483 5.0

AB 15830 5625 0.36 3653 2702 5.0 6619 1.89 12536 3.4

AQ 2301 1168 0.51 531 561 5.0 1374 2.03 2790 5.3

AU 4208 2205 0.52 971 1059 5.0 2594 2.04 5294 5.5

AY 307 103 0.34 71 50 5.0 122 1.87 227 3.2

Total 23109 9337 0.40 5333 2102 5.0 5149 1.94 21414 4.0

Generic 23109 6244 0.27 5333 3000 5.0 7348 1.79 13129 2.5

Asian Pacific Options Monthly Mean Monthly Standard Deviation Coefficient of Variation Weekly Mean Weekly Std Deviation Mean LT Weeks Std Dev Expense Demand Safety Factor Safety Stock Safety Stock Week of Supply

A 115 282 2.46 26 135 4.0 303 2.54 770 29.1

AB 332 266 0.80 77 128 4.0 286 2.16 617 8.1

AG 1006 604 0.60 232 290 4.0 649 2.06 1336 5.8

AK 31 23 0.76 7 11 4.0 25 2.14 54 7.6

AU 449 556 1.24 104 267 4.0 597 2.32 1382 13.4

Total 1932 507 0.90 446 243 4.0 544 2.17 4160 9.3

Generic 1932 750 0.39 446 360 4.0 806 1.89 1526 3.4

N.America Options Monthly Mean Monthly Standard Deviation Coefficient of Variation Weekly Mean Weekly Std Deviation Mean LT Weeks Std Dev Expense Demand Safety Factor Safety Stock Safety Stock Week of Supply

A 26432 7377 0.28 6100 3544 0.2 3882 1.46 5685 0.9

AB 146 130 0.89 34 63 0.2 69 1.94 133 3.9

AG 15 30 2.06 3 15 0.2 16 2.24 36 10.6

AK 16 24 1.45 4 11 0.2 12 2.12 26 7.0

AU 3 5 1.71 1 2 0.2 2 2.18 5 8.5

Total 26612 7328 0.28 6142 3520 0.2 3856 1.47 5885 1.0

Generic 26612 7384 0.28 6142 3547 0.2 3886 1.46 5680 0.9

Conclusion:

It has been shown that from the perspective of the third party logistic providers, their view on inventory management approaches from the high technology organization can be improved. Their highest ranking requirement is customer satisfaction, and through an example of inventory postponement, there are situations where inventory is not available and part delivery is delayed and part orders cannot be fulfilled on time. This is a concern for the third party logistics provider as these are their highest ranking requirements.

- In order to meet these requirements, the high technology organization needs to have more accurate forecasting, and to strengthen its communication with its customers and third party logistics provider’s organization.

- In order for the high technology industry to work out how to incorporate inventory postponement.

The implication of inventory management approaches from the perspective of the third party logistics provider is that through inventory postponement, customers are frequently waiting for stock to fulfill their requirements, and in turn puts added pressure on to the third party logistics provider who faces these inventory management issues directly with the customers. The implications of this can be negative feedback and negative customer relationships, as opposed to positive customer relationships if the inventory management approach adopted a level of inventory speculation, where forecasting would increase the inventory and would be more likely be available to fulfill the customer’s requirements.