Running Head: Hewlett-Packard Supply Chain 1

DeskJet Printer Inventory
Ernesto Gutierrez
5850 Logistics/Case 2
Webster University
Stephen Lee
27 September 2014

Hewlett-Packard Supply Chain 2

Abstract
In 1998 Hewlett Packard introduce one of the first printer products to gain sales over 600,000 units in 1990. With over $400 million in sales, Hewlett Packard had gain a foot hold on this market and was growing steadily at a rapid rate. Unfortunately, inventory growth had tracked sales growth closely. Already HP’s distribution centers were having issues maintaining inventory levels and were not able to maintain satisfactory product availability. Can a new logistics design be used to control this issue, will a delayed differentiation help with the issues faced at HP, When is it the right time for suppliers to be involved with new product development process. This paper will attempt to answer these questions to better understand the operations at HP and their supply chain.

Hewlett-Packard Supply Chain 3
DeskJet Printer Inventory The inventory problems in the European distribution centers at HP faced long delivery lead times of about four to five weeks from its production facility in Vancouver, Washington, to Europe. The Vancouver plant is a high speed, high –volume facility where manufacturing takes about a week . Hewlett Packard was concerned with high inventory levels and an inventory imbalance in Europe. One of the characteristics of the DeskJet