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Hp Deskjet Supply Chain

Decent Essays

Summary:

To maintain Europe satisfactory product availability, Europe wants more inventory but HP Distribution centers are full of inventory of pallets of Desk Jet printer.

Market
Market is mature in US and Western Europe but developing in Eastern Europe and Asia-Pacific.

As printers became commodity products to computers in US, they started to be sold in superstores, consumer mass merchandisers (K-Mart) rather than computer dealers.

For customers; printers’ quality, price, speed, sustainability and availability are the matrices to decide on a printer.

HP Keynotes
Inkjet: HP leads in US but Canon leads Japan.

Vancouver, Washington Division & Zero Inventory Goal * Mission: Low Cost, Premium Quality Printers …show more content…

* Distribution Services :Planning, Procurement * DC performance measures: * Line Item Fill Rate (LIFR) : Total no. customer order line items filled / Total no. customer order line items attempted (that is each time a material is pulled for a line item) * Order Fill Rate (OFR): Similar to LIFR but based on orders completed. An order consists of multiple line items. * Inventory Levels * Distribution Cost per Gross Shipment dollar * Major Costs:
Informal, Open to Negotiation on % Allocation * Outbound freight : Charged back to Product lines based on Actual No. of Pounds of Product Shipped. * Salary * Non-Freight: Percentage of Estimation of percentage effort to support a product line charged back to product lines * DC’s 4 process steps: 1. Receive products from various suppliers and stock them 2. Pick various products needed to fill a customer order 3. Shrink-wrap the complete order and label it 4. Ship the orders via appropriate carrier * Desk Jet

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