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CHAIN
GROUP 10 (SEC F)
HIMANSHU TANDON (1411372)
ARNAB MAJI (1411360)
S SHAHZAD ANJUM (1411396)
SOURAV DAS (1411408)
NITESH JAIN (1411384)
Group 10
Market Scenario
Market Share
Impact/Dot Matrix
40%
Ink-Jet
20%
Laser
40%
North America - HP
Japan - Cannon
Europe - Several Players
Objectives
product loyalty
High reliability and quality and low cost
Supply Chain
Suppliers
Suppliers
Suppliers
IC Mfg.
PCAT
FCAT
Suppliers
US DC
Customer
Europe
DC
Customer
Asia
DC
Customer
Problems
Inventory/Service Crisis
A
AA
AB
Safety Average
Stock Invento
(units)
ry
(units)
Inventory
Holding
Costs ($)
84.9
89.8
24695
534.2
583.2
160380
14736.
16583
4560325
1
AQ
2301.2
1168.5
42
7
1493.4 3061.4 3329.9
915722.5
AU
4208
2204.6
42
7
2817.5 5775.9 6266.9 1723397.5
AY
306.8
103.1
42
7
131.8
270.1
305.9
84122.5
Averag 23108.6
Total
27158.6 7468642.5
Transportation Costs = Mean Monthly Inventory * $1 = (23108.6 * 1) = $
e
23,108.6
Total Inventory Holding Costs = Total Average Inventory*0.5*(660/1.2) = $
7,468,643
Monthly
Mean
(units/month
)
Monthly Std.
Dev.
(units/month
)
Lead
Time
(days
)
Revie
w
Perio
d
(days
)
42.33333
32.41305
14
15830.08
5624.579
14
4208
2204.583
420.1667
Daily
Safety
Stock
(units)
Average
Inventory
(units)
Inventory
Holding
Costs ($)
27.11871
55.59335
60.53224
16646.36
4705.86
9647.013
11493.86 3160810.83
14
1844.487
3781.197
4272.131 1174835.83
203.9268
14
170.6174
349.7657
398.7852
109665.92
2301.167
1168.493
14
977.6317
2004.145
2272.614
624968.92
306.8333
103.1229
14
86.27881
176.8716
212.6688
58483.92
Std Dev
A
AA
AB
AQ
AU
AY
Average
A
AA
AB
AQ
AU
AY
Averag
e
Monthly
Mean
(units/mont
h)
Monthly Std.
Dev.
(units/month)
Lead
Time
(days
)
Review
Period
(days)
Average
Inventor
y (units)
Inventory
Holding
Costs ($)
Std Dev
42.33333
32.41305
22.91949
46.98495 51.92384
14279.058
15830.08
5624.579
3977.178
8153.214 10000.06
2750015.8
4208
2204.583
1558.876
3195.695 3686.628
1013822.5
420.1667
203.9268
144.198
295.606
2301.167
1168.493
826.2496
1693.812 1962.281
539627.25
306.8333
103.1229
72.9189
149.4838
185.281
50952.26
Total
16230.8
4463468.91
23108.58
Daily
Safety
Stock
(units)
344.6254
94772
Results
Reduction of inventory holding cost is more in the
alternative 2
Caveat:
The set up cost for the new factory is not mentioned in the
case