Hewlett-Packard Produces Deskjet Printers for Worldwide Demand at Its Vancouver

Essay

Hewlett-Packard produces deskjet printers for worldwide demand at its Vancouver, WA facility. It is observed that the monthly demand for type AB printers at the European DC averages 15,830 with a standard deviation of 5,624.
-HP is considering sending the printers by airfreight instead of sending them by sea. Airfreight will cost an extra $5 per printer but will reduce the delivery lead-time to 1 month. Identify the tradeoff that HP must consider when deciding whether to go with the airfreight option. What would you recommend? Why? Quantify the costs and benefits of the change.