3.

Our thingking about the idean of HP supply the generic printers to

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 reseller is :
We agree that with the generic printer supplies to Europe, DC, will result in a
reduction in the amount of safety stock and holding cost. Supposedly DC can
keep the stock generic printer, which are fewer in number than the existing
number. Therefore, the DC will focus on aggregate demand than individual
requests because of differences in the standard deviations are much smaller.
In addition, the cost of shipping and customs will decrease as the reduced
number of safety stock, so that the local market will be more popular.
But, we also think that HP need to invest facility for localization process in the
distribution centers, and quality of the finish goods could not be as good as the
goods that manufactured in Vancover.
4. Our recommendation for HP are :
a) HP should forecase the demand based on statistical data,
b) change the method of shipping products, from sea to air line because the
cost of shipping by air will be much cheaper, and
c) observe the local market demand for the European territory DC to
execute strategies for more efficient delivery

MM 5004
OPERATIONS MANAGEMENT
CASE

HEWLWTT PACKARD
Supplying The Deskjet Printer in Europe
Syndicate 3
Vanessa Catalina Fuadi (29114317)
Randy Dwi Rahardian (29114455)
Viliny Lesmana (29114331)
Aris Ramadhan (29114448)

MASTER OF BUSINESS ADMINISTRATION

BANDUNG INSTITUTE OF TECHNOLOGY
BANDUNG
2015