SYNDICATE 8 :

Muhammad Miftah Firdaus / 29116004

Zein Yurianto /29116193
Wini Pawitra Nirmala / 29116151
HP CASE
1. Develop an inventory model for managing the DeskJet printers in Europe
assuming that the Vancouver plant continues to produce the six models sold in
Europe. Using the data in the previous slide, apply your model and calculate the
expected yearly investment in Desk Jet printer inventory in Europe DC.

Mon
th

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep
t

Oct

Sigma

80

60

90

21

48

20

54

84

42

508

42,333
33

205
72
456
4

208
95
320
7

192
52
748
5

110
52
490
8

198
64
529
5

203
16

133
36

90

105
78
500
4

609
5
438
5

144
96
510
3

237
12
430
2

979
2
615
3

1899
60
5049
6

32,413
05
5624,7
36
2204,5
83
203,92
68
1168,4
93
103,12
29
6244,1
01

AB
AU
AA

400

255

408

645

210

87

432

816

430

630

456

273

5042

AQ

400
8

219
6

476
1

195
3

100
8

235
8

167
6

540

231
0

204
6

179
7

296
1

2761
4

AY

248

450

378

306

219

204

248

484

164

363

384

234

3682

Total

298
72

270
03

323
44

189
54

266
17

231
03

156
92

174
31

134
04

226
92

307
35

194
55

2773
02

Averange Monthly Demand

: 23,109 Units

Annual Demand : 277,302 Units

Annual Cost

: 17,331,375 ( 277,302 units x $ 250 x 25 %)

15830
4208
420,16
67
2301,1
67
306,83
33
23108,
5

2. Compare your results from question 1 to the current policy of carrying one
months average inventory at the DC.

Inventory Analysis
Europe
Options
A
AB
AU
AA
AQ

Ave

Montly

Ave

Weekly

Std.dev

Monthly

std

weekly

std

demand

Demand

deviation

demand

deviation

period

42.33
15,830.00
4208
420.166666

32.41
5624.74
2204.58

9.78
3655.89
971.82

15.58
2703.08
1059.46

34.83
6044.26
2369.01

2.18
1.89
2.04

71.5
12433.5
4873.6

7.4
3.4
5

7
2301.16666

203.93

97.04

98

219.14

2.01

450.6

4.6

1168.49

531.45

561.54

1255.65

2.03

2583

4.8

Safety

Safety

factor

stock

3. Evaluate the idea of supplying generic printers to the Europe DC and

integrating the product by packaging the power supply and the instruction
manual at the DC just prior to delivery to the European re sellers. Focus on the
impact on DC inventory investment in this analysis.

Doing the integration process in the DCs would have positive results on the
business inventory management. This would create significant reduction on their
freight cost and custom duties.

By packaging the power supply and instruction manual before delivery could meet
local standard and create hire local market presence.

They will focus on generic product and it will decrease the value of transit
inventory.

Weeks
of safety
stock

Question 4 : What is your recommendation to HP?

Localization at the DCs should be done to lower down cost at the

manufacturing site.

It is recommended that HP proceed with the localization of the deskjet

printer in the DCs.

It will not only lower the shipping cost but also allow HP to focus more on
the local needs in each of its DCs.

Quality assurance policy to continue providing products with same quality as the

ones being manufactured at the Vancouver manufacturing center, must be implented

Air shipment should be used in transporting the printers.

Improve forecasting methods