Supply Chain Management Assignment Essay Example | Topics and Well Written Essays - 1000 words

Supply fibril Management Assignment - Essay Example277, 303 units divided by the number of months. The enounceing appeal of producing individually printer incurred by the company is stated to be $250. Based on the to a higher place data the carrying hail of each of the several units is assumed to be around $21. Moreover the lead time required to hostile expedition the products from the Vancouver centre to the European Distribution Centers is observed to be 35 days. Given the above conditions the economic order quantity that ought to be produced by the firm can be calculated as Square rout out of (2 * Average Demand* Cost of Order/ Cost of Carrying) or it arrives to under Square Root of (2* 23109* 250/21). herein the Economic Order Quantity based on the above model turns out to be 742 units approx. The live of production of each unit by the company is observed to be given as $250. thereof the yearly investment based on the economic quantity calculated comes to around $250 * 742 units i.e. $185,500 on an average. A.2. The calculation of economic order quantity would supporter the company in reducing the cost pertaining to the production of DeskJet printers through with(predicate) the focussing of the flow of raw materials. The calculation of economic order quantity would also help the management in reducing the level of distribution costs of the printer gadgets from Vancouver to the European Distribution Centers. ... Less hail of working capital would be expended or locked for the above reason and frankincense would help the company crap more profits. Further the problems relating to effective job management in regards to the delivery of the same from the Vancouver center to the European distribution houses can be effectively managed in which the issues relating to piling up or shortage of stock in some quarters can be effectively addressed. Thus by depending on the above model of economic order quantity the company can both manage the level of line of descent flow from Vancouver to the European distribution houses and also the cost factor related to such (Chase et. al, 684). A.3. The Company focuses on making the DeskJet printers more customized through the modification conducted in the technical aspects of the products to help intake lesser voltage. This carry out of customization is conducted in the several European distribution centers where separate installations are made inside the printer to help the local population gain advantage from spending less power on such products. The cost of power being saved would help to elicit the demand for the same in the local markets and thus would also help the company to gain large amount of business profits. Moreover the factor of consumer the true would also be enhanced based on the above reason wherein the consumers would aptly feel cared by the company in helping them reduce the costs related to power usage. Again Hewlett Packard also helps to enhance the process of custom ization or localization through the rendering of manuals pertaining to the use of the gadgets inside the packaging boxes. These manuals would be create verbally specifically in local languages which would help the local people