Hewlett Packard Case

1612 WordsJul 29, 20137 Pages
University of British Columbia Sauder School of Business COMM 399: Logistics and Operations Management ASSIGNMENTS Assignment 1 (do not hand in) Read the Harvard Business School case Benihana of Tokyo, and answer the following. 1. What are the differences between the Benihana production process and that of a typical restaurant? Special Instruction: Do not hand in this assignment, but please be prepared to discuss this case in class. Assignment 2 Read the Kristen’s Cookie Company (A) case, and answer Key Questions to Answer before you Launch the Business. You may need to make assumptions to answer some of the questions. Make appropriate assumptions as needed, and state…show more content…
Assume 4.33 weeks in a month. Note that this is a fixed time period model with review period = 1 week. Lead time for ocean transit = 5 weeks, and lead time for air freight = 1 week. While calculating annual inventory costs, remember to include pipeline (in-transit) inventory, safety stock, and cycle stocks. The annual average inventory cost is computed as follows: Annual Average Inventory Cost = (Safety Stock + Average In-Transit Inventory + Average Cycle Inventory) × (unit cost) × (percent carrying cost). Note that in a fixed time period model, the ordering cost is fixed 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 total supply chain cost per printer sold is given by (unit cost) + (average inventory cost per printer) + (transportation cost per printer). Your recommendation to HP should be to use the option that minimizes total supply chain cost per printer. “Current Policy” for Question 2: The “current policy” used by HP is not clearly explained in the case. The wording in paragraph 6 is different from the wording in Question 2. To be consistent, use the following interpretation: “Target inventory level at the DC” = “Average inventory at the DC”. According to the case, the average inventory at the DC is equal to one-month’s average sales. Under the fixed time-period model, the average
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