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The Desk Jet Supply Chain

The Desk Jet Supply Chain. Vancouver PCAT - printed circuit card assembly and test FAT - final assembly and test 1 week cycle time no inventory Transport To San Jose, 1 day To EU 4-5 weeks To Asia 4-5 weeks. Stock vs Pull. DC’s - Target stock levels Forecasted sales

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The Desk Jet Supply Chain

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  1. The Desk Jet Supply Chain • Vancouver • PCAT - printed circuit card assembly and test • FAT - final assembly and test • 1 week cycle time • no inventory • Transport • To San Jose, 1 day • To EU 4-5 weeks • To Asia 4-5 weeks

  2. Stock vs Pull • DC’s - Target stock levels • Forecasted sales • Safety stock to ensure availability • Vancouver - Pull • Replenish DCs to target levels just-in-time

  3. The Physical Supply Chain Supplier IC Mfg US DC Customer Supplier PCAT FAT EU DC Customer Supplier Mech Mfg Supplier AP DC Customer

  4. Variability • Material Availability • Process Yields and Downtime • Transport time to Asia and Europe • Demand

  5. DCs • Standard Process • Receive • Pick • Pack and Label • Ship • Some demand for “integration” • Little support for it

  6. Forecasts • Very bad in Europe • Overstock on some models • Shortages of others

  7. Proposals • New Plant in Europe • More Inventory • Air freight to Europe • More complex forecasting methods • ...

  8. Demand Data

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