Week 7 - Homework

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Jun 3, 2024

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Assignment 7.2 – HOMEWORK 1. Chapter 10, page 283 (eBook page 108). Case: Hewlett-Packard Company: Network Printer Design for University – answer the five questions on page 283 (eBook page 108). Note: The complete case study is in the Case Supplement section of the eBook (page 269). 2. Chapter 11, What are the drivers of supply chain flexibility? 3. Chapter 11, What are the advantages and disadvantages of the U-shaped production lines? Justify your findings. 4. Chapter 11, page 303 (eBook page 117). Answer the two Discussion Questions Chapter 10 Case Study 1. A postponement strategy is used to control inventory allowing products to be produced when in demand aiding companies in using resources and products in a more efficient way (Rau, Budiman & Maonteiro, 2021). Adopting a universal power supply at HP will result in less products being produced. The power supply will be used for printers, helping HP with inventory management. 2. The universal power system is estimated to be about $30 of added cost to the already $1000 to the printer engine cost. It is assumed that the cost will go to the customer or retailer. Benefits to the universal power system is reducing the need to produce a US power supply and an European power supply, this will decrease the need for longer manufacturing lead times from two separate power supplies, enhance the possibility of utilizing transshipment for transportation therefore reducing overall transportation costs, and having to forecast two different market demands for two separate products, with different manufacturing times. 3. Due to the initial long lead times needed for production of the different supply systems, distribution centers held higher inventories to account for the lead and transportation times, therefore in the beginning of production, the DCs would need to remove the inventory on hand before moving to the Rainbow printers so initially there might not see a lot of revenue and demand for those printers. As the DCs empty their inventory, there will now be an increase in demand. 4. HP can improve its ability to demand forecast and determine a better way to reduce lead times for printers Globally. The uncertainty and long lead times results in distribution centers having an abundance of safety stock and more than likely there is a bull whip effect in place as a safety net due to the long lead and transportation times. Therefore, knowing and having an
accurate demand forecast affects the amount of printers put into order by the manufacturer. 5. My recommendation would be to go forward with the production of Rainbow and utilizing a universal power supply. Financially, there will be an increase which would have to be charged to the customer but at only $30, a rise in cost is expected for a new product and that is not a significant raise. The benefit to this new product outweighs the cost significantly as it can potentially allow the company to test out different transportation strategies that can reduce cost, it will reduce lead times which can give a better peace of mind and trust to DCs and therefore having fewer safety stock inventory and a better demand forecast, this will lead to reduction of manufacturing costs and potential waste. Rau, H., Daniel Budiman, S., & Monteiro, C. N. (2021). Improving the sustainability of a reversesupply chain system under demand uncertainty by using postponement strategies.WasteManagement (Elmsford), 131, 72- 87.https://doi.org/10.1016/j.wasman.2021.05.018 Chapter 11 2. What are the drivers of supply chain flexibility? Supply chain flexibility is the ability to respond to change without increasing operational and supply chain costs and with little or no delay in response (Simchi et al, 2023). The key driver to flexibility is that it’s demand-driving being adaptable to changing customer demand trends. 3. What are the advantages and disadvantages of the U-shaped production lines? Justify your findings. U-shaped production lines are when machines or processes are arranged around a U-shaped line in the order in which production operations are formed (Simchi et al, 2023). One operator supervises both the entrance and the exit of the line. Machine-work is separated from operator-work so that machines work independently as much as possible (Cordero, 2001). Advantages of U-shaped production are enhanced productivity though easy access to all equipment and tools, and necessary materials needed, improved quality control by promoting a culture of accountability and responsibility as operators are in close proximity to each other, quick
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