Hewlett-Packard Company: Network Printer Design for Universality case - Essay Example

The most significant benefit of a UPS is that the company, HP, would have the ability to aggregate forecasting on all its product unit within all the markets. This would ensure an increase in the accuracy in the forecasting of their products. This would help the company reduce lead times on its production process, reverse logistic times and mitigate the costs of a product’s obsolescence if they can manage to move a product between two or more markets as compared to reassembly which is both a costly and time consuming process.

Owing to the reduction in the movement of products that was initially brought about by reassembly, the costs of transportation would decrease significantly. This would also ensure the availability of stock when required. During the product life cycle, the costs and benefits vary depending on the stage of the cycle. This product is in the ramp-up stage. The most important cost is the increase in the price. In the case of a considerable cost that is transferred to the customers through a price increase, customers would be inclined to not purchase the product.

However, in the case that there isn’t a price increase, then the cost will be secondary at this stage of the product’s life cycle. The ability to aggregate across all markets is essential at this given stage as this would create an ideal environment for the movement of products across all markets in the case of shortage of stocks. Owing to the urgency of the products by the consumers, lead time reduction is integral to the timely delivery of the product to ensure customer satisfaction. During this stage, it is essential that no reverse logistics be implemented.

This is owing to the fact that it would be take a much shorter time to get products and/or reorders that were given back to the clients. This would be greatly benefited by a considerable reduction in the cost of transportation so as to ensure