Contents
This report is based on the following requirement - - Required Reading
- Slagmulder, R. and van Wassenhove, L. 2004. Hewlett-Packard: Performance Measurement in the Supply Chain. INSEAD Case, Case Ref. No. 604-036-1
- Assignment Details
- Using the material in the INSEAD case above, please focus on the following:
- Apply the Measure Design Template and The 10 Tests discussed in class to analyze the robustness of IDC as a performance indicator. Where the case information is not sufficient, make a reasonable assumption and explain how you arrived at it (50%).
- Based on your analysis,
- o What are the key strengths and weaknesses of this indicator? (20%) o What improvements to this indicator can you suggest? (20%)
- NB: Please make sure your paper is clearly structured and well-written and conforms to the standards of academic style and referencing (10%)
Description
HP is a leading provider of IT infrastructure, global services, imaging and printing equipment to home consumer and business. However the potential customers of the company frequently change their decision based on the availability of the products and its price rather than a product feature (Fan, Wang and Chuang, 2011). Henceforth HP had to change its supply chain management strategy that was primarily focused on brand image and reputation. Therefore the report evaluates the sturdiness of IDC or Inventory Driven Cost as a performance indicator and its usefulness and challenges so that IDC can be improved (Slagmulder and Van Wassenhove, 2004). The study further investigates how Inventory Driven Cost was used in the strategy formation by HP and how it was integrated into the supply chain process of the company (INSEAD- The Business School of the World, 2004).
