【正文】
ay ? At distribution centers, simple standardized process HP DeskJet Case: Analysis ? Problems – High inventory levels – Inventory imbalance in Europe ? Causes – Uncertainty about correct inventory levels – Many geographic options (localization) – Long lead times – Uncertain market – Difficulty at getting divisions to work together ? What are HP’s options? HP DeskJet Case: Options ? Short Term – Rationalize safety stock ? Long Term – Air shipment – European factory – More inventory – Better forecasting – DC localization Safety Stock Rationalization: Example Europe AB ? Recall: Safety Stock = z ? STD * ?LT Mea n W ee k ly D em a nd 3656 Mo nt hly / 3St d. Dev 2703 Mo nt hly/( ).5Lea d Ti m e 5St d. Dev of De m a ndP eriod6044 2 7 0 3 * ( 5 ).5Safet y F a c t o r 1 .9 9 8 % serviceSafet y St o c k 1 1 4 8 3 1 .9* 6 0 4 4Evaluating Alternatives ? Air Shipment – Expensive ? European Factory – Not sufficient volume ? Better Forecasting – How? ? More Inventory – More problems ? DC Localization – What will savings be? Evaluating DC Localization ? In DC localization, risk pooling can be used to reduce total inventory while maintaining service levels ? To evaluate inventory, pare total safety stock held if individual localized units are held in inventory or if generic units are held ? Other costs must also be evaluated Evaluating DC Localization AVG ST D Safet ySt ockWe eksof SSA 42 32 66 AA 420 204 416 AB 158 30 562 5 11,4 84 AQ 230 1 116 9 239 5 AU 420 8 220 5 451 7 AY 307 103 211 Total 231 09 190 89 Gene ric 231 09 624 4 127 92 DC Localization ? Safety Stock Reduction – Current 19,089 units ( weeks) – With localization 12,792 units ( weeks) ? Other benefits – Lower value of transit inventory – Freight reductions – Local presence of “manufacturing” – Customs implications – Local procurement of localization materials ? But there are costs – Product redesign – DC modifications Implementation ? Ra