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HP Deskjet Printer Supply Chain Case Summary
Introduction
The DeskJet printer was introduced in 1988 and had become one of HP`s most successful products. Even though sales had grown steadily, inventory growth had tracked sales growth closely. And the organization in Europe was claiming that inventory levels there needed to be raised even further to maintain satisfactory product availability. Representatives from each countries discussed but they couldn`t reach consensus on the issue. Finally, David Arkadia, the materials manager, thought there were two issues. One was to find the best way to satisfy customer needs in terms of product availability. And the second issue involved how to get agreement among the various parties that they had the right level of inventory. They needed to develop a consistent method for setting and implementing inventory goals and get everyone to sign off on it and use it.
Background
Hewlett-Packard Company was founded in 1939 by Wi…(생략)
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were not aware of inkjet technology. However, customers were discovering that inkjet print quality and sales had increased dramatically. The key technological breakthroughs had been ink formulation and the disposable print head. HP led the inkjet market in the US, while Canon led the market in Japan. Inkjet printers were rapidly becoming commodity products.
The Vancouver division and its quest for zero inventory
The Vancouver division was established in 1979 to provide personal printers for the fast growing personal computer market. They consolidated personal printer activities from four divisions to the Vancouver site. However the management was plopped down in Vancouver. The manufacturing organization realized high volume process but, HP only had experience building low volume, highly customized products using batch processes. (8-12week cycle time and 3.5 months inventory) One day two managers happened to meet two professors Richard Schoenberger and Robert Hall who had just wri
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