Kuiper Leda Week 4

Working Capital Management Concepts Worksheet

Concept Application of Concept in the Simulation Reference to Concept in Reading

Inventory analysis

Kuiper Leda has recently expanded supplying more in the RFIP market as well as the OEM’s market. This has caused increased orders at varied levels. By dropping some suppliers and building more of a relationship with others, they may be able to better control their inventory to what their needs are now. “The basic purpose of inventory analysis in manufacturing and stockkeeping services is to specify (1) when items should be ordered and (2) how large the order should be. Many firms are tending to enter into longer-term relationships with vendors to supply their needs for perhaps the entire year. This changes the “when” and “how many to order” to “when” and “how many to deliver” (Chase, 2005, p590).

Total Quality management

(TQM)

Kuiper Leda is faced with an opportunity to become more in control of the company and its production and process. After recently expanding into a new market as well as maintaining the old, they have the ability to become better prepared for what the market needs and when it will need these products. They will also be prepared to use sources to meet the needs of their customers as different periods in the year. “Total quality management may be defined as “managing the entire organization

so that it excels on all dimensions of products and services that are important to the customer.” It has two fundamental operational goals, namely