Comm 399

Instructor Daniel Ding COMM 399-204 Due 13pm Mar 20, Wednesday Assignment 3 Analyze Hewlett-Packard Supply the DeskJet correspondent in Europe Case (CJA chapter Inventory Control see the course package). Answer questions 1, 3, and 4 given up at the end of the case (question 2 is not required). Discussions are permitted within a group of at most 3 students, but everyone has to deflect their own assignment and it bearnot be an identical copy Paperversion is preferred. For your convenience, I have prepared a spreadsheet (Assignment3_HP. ls) in the assignment folder on connect. It may save piles of your era if you work on the excel. If you choose to use excel, be sure to include the excel spreadsheet when you ingest your assignment. Please use hints that are provided below. In comparing different options (localization of a generic wine printer at DCs or not), you need to quantify the benefits from each. The best way to do that is to use the inventory models to calculate the ma ke out be of inventory per unit (for all DeskJet models) under different options. Use demand data from the gift 13. 16.For your convenience, the monthly and weekly mean and standard deviation for six models as well as generic printers have been calculated in the spreadsheet Assignment3_HP. xls Assume 1 month = 4. 33 weeks Assume a 98% service level. The z value to ensure a 98% Service level is 2. 06. Note that this is a fixed time period (R,T) model with review period T= 1 week. Lead time for ocean transit = 5 weeks While calculating yearbook inventory costs, remember to include phone line (in-transit) inventory, safety stock, and cycle stocks (because in this case, HP is responsible for all these costs). The annual average inventory cost is computed as follows Annual Average Inventory Cost = (Safety Stock + Average In-Transit Inventory + Average daily round Inventory) ? (unit cost) ? (percent carrying cost). Note that in a fixed time period model, the ordering cost is f ixed and can therefore be ignored. We can find the average inventory cost per printer by dividing the annual average inventory cost by mean annual demand (mean monthly demand ? 12). The summarise supply chain cost per printer sold is given by (unit cost) + (average inventory cost per printer) + (transportation cost per printer). For question 4, your recommendation to HP should use the option that minimizes total supply chain cost per printer. Suggested length If you use excel (Recommended Approach), then submit the spreadsheet plus one-page report that briefly explains your result otherwise, you may submit a report which includes 2-3 page solution details.