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Gap Analysis: Kuiper Leda Inc
Inventory management is the planning and controlling of a companies inventory starting with the raw material stages and ending with the delivery of a completed product. It is important that production schedules are efficiently ran in order to keep commitments to customers. Often time companies need to manage various types of inventory in a way that will optimize inventory while enabling them to remain competitive.
Kuiper Leda Inc. is an electronic components manufacturer that specializes in the production of Electronic Control Units (Ecru’s) and sensors for the automotive industry. Its clients include automobile manufacturers and Original Equipment Manufactures (OEMs) for the automotive industry. The company has recently added another product, The Radio Frequency Identification Device (RFID) Tags. Kuiper Leda believes in constantly upgrading their existing technological infrastructure. Currently they are looking at several technology-based options to optimize key elements.
This paper provides detailed analysis and evaluation of Kuiper Leda’s situation and develops a management strategy that can be performed and implemented for the given issues in the scenario.
Situation Analysis
Issue and Opportunity Identification
There are a few issues and opportunities available to Kuiper Leda. The company received an order for 250,000 ECU’s and 35,000 RFID tags. A minimum order has to be delivered every month. The first thing that Kuiper Leda needs to do is find a way to supply higher volumes over its regular orders. The company needs to decide whether or not to manufacture the products in house or if it would be better to outsource either partially or completely.
The next issue is to develop an Inventory Management Plan for handling the requirement of Microchips. The microchips are partly outsourced and partly manufactured in-house. The plan will need to be able to forecast error, service...