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Hp Deskjet- Supply Chain

In: Business and Management

Submitted By csmarshall7
Words 465
Pages 2
Key Issues:

#1 Inventory Management
HP is currently facing inventory issues as product availability cannot meet demand. This is best comprehended with the following statement by Brent’s boss, “We’re just going to have to meet customer needs with less inventory.” Likewise, this issue is very critical towards HP’s success as a business because if the company cannot meet demand it is most likely that its customers will go elsewhere. This industry is very competitive as per the case, so it would be essential to address this issue so that the business can continue to grow and expand.
There are shortages of some models to certain countries and a surplus to other countries. It is because of the rising demand that there seems to be a degree of inventory issues. Inventory levels in Europe need to be raised. There is a need to connect the supply with demand or to have a balance between the inventory level and the service level. However, HP also desires minimum inventory levels thus meeting demand and adhering to this strategy seems to be the challenge. Consequently, if HP has a system which allocates recourses accordingly the company would not be in this predicament.

#2 Shipping/ Transportation Issues
Although there is nothing wrong with the transportation service providers that deliver HP products, however, there is an issues with the amount of time it takes to be delivered. In a nutshell HP is experiencing a problem with the mode of transportation that it is currently using and the distance between the ship to and ship from destinations. It takes about 4-5 weeks for HP products to arrive in Europe from its destination in Vancouver.
There are costs involved with all transportation methods, but HP may need to look into Air Freight and figure out if that may be a viable alternative during peak periods, however, if this issue is not addressed HP will lose out on…...

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