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Case Study HP

HP faced high printer inventory costs while needing to maintain high customer service levels in Europe. By viewing its entire supply chain as a system and delaying printer customization until orders were confirmed, HP was able to reduce inventory costs by over $30 million annually while maintaining service levels.
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0% found this document useful (0 votes)
435 views2 pages

Case Study HP

HP faced high printer inventory costs while needing to maintain high customer service levels in Europe. By viewing its entire supply chain as a system and delaying printer customization until orders were confirmed, HP was able to reduce inventory costs by over $30 million annually while maintaining service levels.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Hewlett-Packard's Systems Approach to Inventory Management

Hewlett-Packard (HP) is a leading global supplier of computer printers, particularly the


ink-jet variety. It has over $3 billion invested in Inventory worldwide. HP has a division
located in Vancouver, Washington, which manufactures and distributes the Desklet Plus
printer worldwide. It has three distribution centres, one each in North America,
Europe,and Asia.

HP faced a situation where high inventories of printers, approximately seven weeks'


worth, were required to meet their 98% service goal in Europe. High inventories were
required in part because each country has unique power cord and transformer
requirements, and needs the proper language manual. Initially, the 'differentiation' of the
printers to needs of the local market was done at the Vancouver facility. HP apparently
faced the prospect of high inventory costs or reduced customer service levels, neither of
which was an acceptable option.

The management at theVancouver site considered many options for reducing inventory
while maintaining customer service. They first worked on improving the logistics system
by reducing delivery variability. They considered faster shipping modes, such air, are to
reduce transit inventory, and inventory held to cover lead times. That Alternative proved
too costly.

However, by looking at the entire system as a whole, HP was able to develop a better
solution. It could delay the differentiation of printer power sources and manuals until firm
orders were received. This allowed HP to reduce inventory to weeks while maintaining
98% service [Link] saved over $30 million annually. In addition,transportation
dropped by several million dollars because generic printers can be shipped in larger
volumes than printers specific to a particular country. Because HP viewed the system as
a whole and understood the interactions, they were able to develop this innovative
logistical innovation.

Questions:

1. What was HP's problem?


- Đầu tiên là lượng hàng tồn kho máy in cao nhưng vẫn phải đáp ứng mục tiêu
98% về dịch vụ ở châu âu.
=> đứng trước 2 nguy cơ:
(1). viễn cảnh chi phí hàng tồn kho máy in cao
(2). mức độ chất lượng dịch vụ khách hàng bị giảm
2. How did HP solve that problem?
HP sử dụng 2 phương pháp :
1. Nguyên tắc tiếp cận hệ thống ( system approach)
2. Nguyên tắc tránh tối ưu hóa cục bộ ( the avoidance of suboptimization)
Cụ thể là: HP xem xét hệ thống như một tổng thể và hiểu được sự liên kết giữa chúng.
ví dụ như
(1). khi nào có đơn đã được xác nhận thì mới bắt đầu điều chỉnh máy in và giấy hdsd
cho phù hợp với từng khách hàng ở quốc gia khác nhau
(2). Loại máy in chung không cần điều chỉnh có thể vận chuyển với số lượng lớn để tiết
kiệm chi phí
(3) Phát triển và đổi mới hậu cần

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