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...The Europe and Asia-Pacific DCs had two issues to grapple with: long lead times and a requirement for extremely high service levels. Each printer designed for a local market overseas had to be completed at the factory in the USA and then took a month to arrive. If demand exceeded supply at the DC, there were costly delays in getting the proper localized versions of the printer to the right place. In the meantime there was often a surplus of printers designed for other countries in the very same DC. Furthermore, torrid growth in the inkjet printer market meant that factors like price and availability were becoming most important to consumers as quality and reliability distinctions between manufacturers narrowed.
HP had to find a way to reduce costs (to keep prices down relative to competitors) and still maintain a wide variety of localized products to meet availability requirements...
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Total Reading Time: Approx. 1 - 2 hours (for average readers)
Word Count: Approx. 10,600 words
Author: Dr. Warren H. Hausman
Professor of Management Science & Engineering, Stanford University
Certificate: Counts toward Fundamentals of Supply Chain Management
Datasheet: Download
Contents
- Introduction; Component Commonality, Modularity, Modular vs. Integral Design
- Universality
- Framework for Costs and Benefits
- Benefits of Design Changes
- Benefits of Design Changes, Continued
- Postponement: The HP Deskjet Printer
- Postponement Costs and Benefits (Deskjet Printer, continued)
- A Quick Estimate of Postponement Benefits from Reduced Inventories
- Packaging Postponement
- Postponement via Software
- End-of-Life and New Product Situations
- Process Design for Postponement
- Mass Customization
- Incentive Issues
- Conclusions
- Test Your Knowledge
- Feedback