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Hewlett-Packard Combined OR and Expert Knowledge to Design Its Supply Chains

Author

Listed:
  • Claude Laval

    (Strategic Planning and Modeling, Hewlett-Packard, MS 59, 5 Avenue Raymond Chanas, 38053 Grenoble-Cedex 9, France)

  • Marc Feyhl

    (Strategic Planning and Modeling, Hewlett-Packard, MS 59, 5 Avenue Raymond Chanas, 38053 Grenoble-Cedex 9, France)

  • Steve Kakouros

    (Strategic Planning and Modeling, Hewlett-Packard, MS 59, 5 Avenue Raymond Chanas, 38053 Grenoble-Cedex 9, France)

Abstract

Although one can eliminate human bias from scenario definitions when modeling supply chain networks by using a pure operations research approach, the resources, data, and time needed for this approach may prohibit its use in fast-paced business environments. Hewlett-Packard’s (HP’s) strategic planning and modeling (SPaM) team refined an approach using true optimization coupled with scenario analysis, selectively focused on the most critical parameters of the design equation, and used this approach to solve a complex supply chain design problem for HP’s imaging and printing group. The clear and easily demonstrable results helped management to understand their derivation and act confidently. The combined approach gave equal emphasis to optimization and to scenario analysis.

Suggested Citation

  • Claude Laval & Marc Feyhl & Steve Kakouros, 2005. "Hewlett-Packard Combined OR and Expert Knowledge to Design Its Supply Chains," Interfaces, INFORMS, vol. 35(3), pages 238-247, June.
    • Handle: RePEc:inm:orinte:v:35:y:2005:i:3:p:238-247
    DOI: 10.1287/inte.1050.0143
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    References listed on IDEAS

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    1. Frederic H. Murphy, 1998. "The Occasional Observer: Some Simple Precepts for Project Success," Interfaces, INFORMS, vol. 28(5), pages 25-28, October.
    2. Hau L. Lee & Corey Billington, 1995. "The Evolution of Supply-Chain-Management Models and Practice at Hewlett-Packard," Interfaces, INFORMS, vol. 25(5), pages 42-63, October.
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    Cited by:

    1. Osman, Hany & Demirli, Kudret, 2010. "A bilinear goal programming model and a modified Benders decomposition algorithm for supply chain reconfiguration and supplier selection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 97-105, March.
    2. Alper Şen & Deepak Bhatia & Koray Doğan, 2010. "Applied Materials Uses Operations Research to Design Its Service and Parts Network," Interfaces, INFORMS, vol. 40(4), pages 253-266, August.
    3. Ma, N., 2014. "Optimal scope of supply chain network & operations design," Other publications TiSEM e6187708-b664-44bf-aef8-f, Tilburg University, School of Economics and Management.
    4. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    5. Jason Amaral & Dorothea Kuettner, 2008. "Analyzing Supply Chains at HP Using Spreadsheet Models," Interfaces, INFORMS, vol. 38(4), pages 228-240, August.
    6. Moritz Julius Ziegler & Kilian Seifried & Philipp Kuske & Moritz Fleischmann, 2019. "TRUMPF Uses a Mixed Integer Model as Decision Support for Strategic Production Network Design," Interfaces, INFORMS, vol. 49(3), pages 213-226, May.

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