Summary February results Regi on CPU ChipsetHDDMemory IntelAMD Curre nt Target DOI ODM Sugge st DOI RBU/ ODM agree ment Curr ent Targ et DOI ODM Sug gest DOI RBU/O DM agree ment Current Target DOI ODM Sug gest DOI RBU/ ODM agree ment Curr ent Targ et DOI ODM Sug gest DOI RBU/ ODM agree ment Curr ent Targ et DOI ODM Sug gest DOI RBU/ ODM agree ment NA 57~ EME A APJ 14 7~14 10 Open Action Items - Inventory level: Had improvement compared with January result. - OBS risk: CPU total $127K ($269K decreased from Jan.); Memory $26K. - Layering cost: Feb. final memory layering cost $584K. Memory price drop in April and CPU price drop in May. - Due to transportation lead time, CPU DOI was revised from 5 days to 7 days for hub parts and from 7 days to10 days for non hub parts. - Foxconn agreed HP DOI calculation formula.
Inventory Level - Compared with Jan result, DOI was decreased on Intel chipset, NA HDD and WW memory. - NA AMD CPU DOI was increased from 20 days to 28 days as DL385G5p FCST drop around 40%. - Memory High DOI in NA was caused from DL385G2 forecast drop. RegionSite CPU Intel ChipsetHDD (Hub)Memory Intel (Hub)AMD (Hub) Current Target DOI ODM Feb DOI Current Target DOI ODM Feb DOI Current Target DOI ODM Feb DOI Current Target DOI ODM Feb DOI Current Target DOI ODM Feb DOI NAFHS7~ EMEAFCZ APFox 7~
Layering Cost Microprocessor Memory CPU HP P/N for price drop AMD microprocessors will have price drop on May 15. Memory will have price drop on April 1st. ( See list P/N list below ) March estimated layering cost is $518K. Memory HP P/N for price drop $601K $401K $584K $518K
Amsterdam (Intel/AMD CPU) Brno (HDD RR Donnelly) Dallas (AMD CPU)Pardubice (FCZ) Foxconn China Costa Rica (Intel CPU 20% non hub parts ) Penang (Intel Chipset) Hub ODM site Original warehouse Hub V.S. ODM Locations Parts Buffered in hub Houston FHS Intel CPU HDD RR Donnelley AMD CPU Singapore Region CPU Intel ChipsetHDD IntelAMD ship LT Current Target DOI ship LT Current Target DOI ship LT Current Target DOI ship LT Current Target DOI NA EMEA2~ APJ 314
Memory- supplier region warehouse Supplier Regional warehouseShipping LTDOI Target N. A. Qimonda Hayward (California) 3-5 days10 days Samsung, HynixSan Jose ( California) ElpidaPuerto Rico Micron Puerto Rico, Boise (US ), Singapore EMEA Samsung,QimondaGermany 3-5 days10 days Hynix UK Elpida, NanyaNetherlands Micron Singapore, Boise (US) and Puerto Rico APJ Qimonda, Hynix, Elpida, Nanya Winbond, Promos,Samsung, Singapore 3-5days10 days Micron Puerto Rico, Boise (US), Singapore Assumption: Parts available in warehouse
Questions from Sep. Interlock Provided by HP RBU according to expected service level & transportation lead time Formula: ODM QOH/(4 week FCST demand/30 days); FCST is provided by HP Why CPU DOI target is different in NA and EMEA? - Target DOI is provided based on transportation lead time. Transportation Lead time is a function of ODM V.S. Hub location. DOI Calculation - DOI is in calendar days Need to be sure all regions are ok with target DOI - Yes, all regions are ok with target DOI. However, it may change in the future. Include PCA, Chassis and PSU in inventory review ? - No, because of no layering impact on HP. Should be ODM focus