Q2) Exactly what the costs and benefits of general power supply? •Incorporating an general power supply in to the Rainbow printers increase costs by $30 per printer. •This can be described as small amount in comparison to the cost of the engine which usually totals upto$1000 per printing device. •Demand forecasts are a serious problem leading to inventory outs and inventory pileups. •While losing in sales per computer printer costs HEWLETT PACKARD $5000-$6000, along with decrease of customers to competitors, inventory pileups lead to discounted sales and transhipment of the inventory can cost between $75 and $60, along with reconfiguration costs of $250 every printer. •Thus, a $30 additional price on each computer printer on universal power supply can easily prevent the bigger costs of stock outs and inventory pileups. •Also, HP could aggregate predictions and reduce business lead times and reduce logistics costs in re-transporting.

Q3) Just how would such costs and benefits be different over the support life cycle? • Ramp-up level. Here the charge would be of big importance since the increased selling price due to the universal power supply value is transferred to them. This elevated price leads to whether the buyer finds the product overpriced and could lead to loss of sales due to this. The benefits of this however will be able to get worse across marketplaces and is essential at this stage, as it would allow for products to become moved throughout markets if perhaps stock outs occur. The reduction of lead moments at this stage is of great importance as it is going to lead to quicker time to market and gain customers and give an edge more than competitors. Also, product supply is improved and it will stop negative publicity caused due to non availability and build brand reputation.

•Maturity phase: What is important at this point is client's perception and competitive rates from other computer printer companies. From this phase the advantages of no invert logistics is important as enough time taken to acquire reorders can be shorter. Reduced cost of transportation...


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