4 What is your recommendation to HP? The DeskJet printer was introduced in 1988 and has become one of Hewlett-Packard's (HP's) most successful products. Sales have grown steadily, reaching a level of over 600,000 units in 1990. Unfortunately, inventory growth has tracked sales growth closely. HP's distribution centers are filled with pallets of the DeskJet printer. Worse yet, the organization in Europe claims that inventory levels there need to be raised even further to maintain sat- isfactory product availability. THE DESKJET SUPPLY CHAIN The network of suppliers, manufacturing sites, distribution centers (DCS), dealers, and customers for the DeskJet product make up the DeskJet supply chain (see Exhibit 15.13). HP in Vancouver does manufacturing. There are two key stages in the manufacturing process: (1) printed circuit assembly and test (PCAT) and (2) final assembly and test (FAT). PCAT involves the assembly and testing of electronic components (like integrated circuits, read-only memo- ries, and raw printed circuit boards) to make logic boards used in the printer. FAT involves the assembly of other subassemblies (like motors, cables, keypads, plastic chassis, gears, and the printed cir- cuit assemblies from PCAT) to produce a working printer, as well as the final testing of the printer. The components needed for PCAT and FAT are sourced from other HP divisions as well as from external suppliers worldwide.