Analysis Demand of HP Deskjet printers is extremely variable, on both a month-to-month and options basis in Europe. Due to their lack of an inventory management system Europe has experienced issues in stock outs. Providing a technological product with revenue of $588/unit that has constant innovation as well as greater revenue potential and higher margins requires a higher service level percentage. A fill rate of 99.5% as opposed to 98%can provide a more accurate reorder number to ensure that stock outs never happen. To minimize issues regarding localization instruction manuals should be printed with multiple languages per book therefore the only real customization that needs to occur is with the power supply, which may differ between countries. This would minimize the inventory required while still maintaining the requirements of various countries. Another option, which needs to be looked at, is the shipping method from the U.S. to Europe. Instead of sending them via ship ($25/unit) the aviation option was analyzed. It was assumed that by flying, lead times would be reduced from 42 days to 9 days, therefore reducing holding costs by $2,074,195 and therefore creating a savings of $7.48/printer, therefore if the costs of flying each printer is within this price range than it is feasible to do so ($2.52), flying also provides the opportunity to meet customer demands more precisely. Therefore, if you take add the current shipping cost of $25 to the savings of $7.48 you get desired cost of $32.48/unit to fly, which appears unreasonable considering the costs to fly and the added logistic costs to move the printers from the airport to the DC. (Refer to exhibit 2 for calculations) Our final option is to take the suggestion from our Stanford summer student who recommended we tackle the root of the problem, which is the method in which we forecast inventory and how we manage it. The major issue is ensuring that there is always 37,545.93 units at the warehouse, which...