Gap Analysis: Kuiper Leda

Gap Analysis: Kuiper Leda

Kuiper Leda Inc is an electronics components manufacturer based in the Republic of Novamania. The company specializes in the manufacture of Electronic Component Units (ECU) and sensors for the automotive industry. According to the simulation, the 10-year-old company began with an investment of 100 million, and has grown into a 400 million-revenue company this year. In addition, the company recently introduced the Radio Frequency Identification Device into its product lines, and has manufactured that product for six months. As a result, Kuiper Leda has made significant progress in the international market.

Midland Motors, an American Original Manufacturer Equipment company (OEM) recently placed a large order for Electronics Component Units (ECU) and Radio Frequency Identification Device (RFID) tags order for the facilitation of inventory control in its factory. The order placed by Midland Motors will be beneficial to Kuiper Leda; however, because of the urgency and size of the order, it puts Kuiper Leda in a complicated situation because the company does not have the capacity to handle the increased load on the factory.

Situation Analysis

Issue and Opportunity Identification

Midland Motors has ordered 250,000 Electronic Component Units and 35,000 Radio Frequency Identification Device tags from Kuiper Leda. Kuiper Leda, on the other hand, cannot handle production of that magnitude because of its current capacity. Because of that, the company faces the option of expanding its production size so that it can handle Midland Motors' request, or outsourcing a part of the production to another company. Based on the cost and benefit analysis in the simulation, Kuiper Leda will be in a better position to outsource to another company. Outsourcing the production will help Kuiper Leda maximize profit because the company does not have to spend capital in expanding its production base.

Another challenge that Kuiper Leda faces is with inventory control. Because of the size of the order from Midland Motors, the company may need to increase its inventory in order to meet the demand, which in turn will increase inventory costs. An option that Kuiper Leda can explore is adopting the Just-In-Time method of inventory control. The company will be able to get its inventory at the time it is needed, thereby keeping inventory costs low.

Because Midland Motors is a new customer to Kuiper Leda, quality is very important. In addition, Midland Motors has certain specifications for its products. It is important for Kuiper Leda to evaluate relationships with its current suppliers, and if necessary, eliminate suppliers that may not be able to meet the demands of Midland Motors and Kuiper Leda.

Stakeholder Perspectives/Ethical Dilemmas

Kuiper Leda is interested in meeting Midland Motors' requirements in the most efficient way possible. The company is interested in maximizing profit with its limited resources. Logically, if Kuiper Leda had the capacity to handle the production, the company will maximize profit. However, because of the capacity limitations, Kuiper Leda is forced to outsource the production of some of the products to another company. Outsourcing to another company will lower the cost of production for Kuiper Leda to a certain extent; however, the company does not have control on the production.

Natalie Zamora, the Vice President of Finance for Kuiper Leda. Natalie, just like Kuiper Leda as a whole, wants to maximize profit for the company. In order to be able to meet Midland Motors' demand, the company will need to increase its current inventory, which will in turn increase inventory costs. In order to strike a balance, Kuiper Leda should consider adopting the Just-In-Time inventory control method. This method of inventory control keeps inventory costs as low as possible, while supplying the company what they need to meet Midland Motors' demands.

End-State Vision

Kuiper Leda's challenge of meeting Midland

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