Hp Deskjet Printer Supply Chain Case Report

Part 1: Executive Summary

Brent Cartier

Manager for Special Projects in the Materials Department

Hewlett-Packard (HP) Company

December 15, 20XX

I. Process Elements/Table of Content (Part 2)

Part 1 Executive Summary

Part 2 Table of Contents

I. Issue with Impact Analysis

Part 3 Immediate Issues

Part 4 Systemic Issues

II. Environmental and Root Cause Analysis

Part 5 Qualitative Analysis

Part 6 Quantitative Analysis

III. Alternatives

Part 7 Alternatives

IV. List Recommendations

Part 8 Recommendations

V. Implementation

Part 9 Recommendations Implementation Plan

VI. Monitor and Control

Part 10 Monitor and Control

Part 11 Conclusion & Management Plan

Part 3: Immediate Issue

Hp’s distribution centers have been filled with pallets of the DeskJet printer. However the Europe is still claiming the inventory levels there needed to be raised.

The Vancouver top management insists that HP is just going to meet customer needs with fewer inventories. Our immediate issue:

1. Too much inventory are in the DeskJet supply chain

2. European and Asian DCs cannot meet delivery requirement

3. Vancouver Division couldn't build the right products in the right quantities.

Part 4: Systemic Issues

1.DCs operate system: Timing: Long Term

Nature: Strategic

In order to match Vancouver’s pull production system, DCs operate system need to be updated to a pull system as well. Now DCs performance measures are LIFR (Line Item Fill Rate) and OFR (Order Fill Rate). And DCs system did not support manufacturing (assembly of components into a final product). There is no MRP(Material Resource Planning) nor BOM (Bill of Materials) explosion system.

2. DCs inventory imbalance: Timing: Short Term and long Term

Nature: Strategic

Inventory imbalance means HP DCs cannot meet the customer requirements. Another phenomenon of inventory imbalance is having the correct amount of total inventory but the incorrect model mixture. That is why European DC has...