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 Vancouver - Pull
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 Some demand for “integration”
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