Kudier Leda

Running head: KUIPER LEDA: BUSINESS PROBLEM

Kuiper Leda: Business Problem Solution

University of Phoenix

Kuiper Leda: Business Problem

End-State Vision

Kuiper Leda aspires to increase its production capacity by investing capital in its technological infrastructure and externally in the short-run through outsourcing. In addition to increasing it production capacity, Kuiper Leda plans to implement an inventory management system and establish an effective centralized distribution system. The eventual outcome for Kuiper Leda should and increase in company productivity and efficiency and a maximization of profit.

Alternative Solutions

The first alternative solution for Kuiper Leda would be a change in inventory management to support the company’s strategic plan. The current change in consumer demand creates new opportunities due to worldwide marketing, global sourcing of materials, and new manufacturing technology. These circumstances create the necessity for Kuiper Leda to implement a new inventory management system. Kuiper must develop an inventory controlplan to deal with excess stock and product.

The second alternative solution would be to utilize ERP (Enterprise Resource Planning). ERP is a system that integrates primary business applications, including all areas and levels of an organization. All the applications in ERP share a common set of data that is stored in a central database. A typical ERP provides applications for accounting and controlling, production and materials management, quality management, plant maintenance, sales and distribution, human resources, and project management.

Since Kuiper Leda is confronted with new markets, new competition, and increasing customer expectations, the company must reassess its business strategy and procedures to be more responsive to customers and competition. The efficiency of an enterprise depends on the free flow of information across the complete supply chain.

Another alternative solution would be to implement Just-In-Time (JIT) inventory model. Incorporating JIT into Kuiper Leda’s inventory operating system and MRP (Material Requirements Plan) will prove to be beneficial. The two models work in complementary relationship with each other. MRP indicates when to release replenishment orders for materials. It determines the requirements and keeps priorities current. Such as the case with the order from Midland Motors, Kuiper Leda will need to have necessary parts stock or have reliable suppliers to meet customer demand within a short time frame. Kuiper must have a practical, efficient method for managing it inventory to ensure customer satisfaction. Customer satisfaction is essential for referral and repeat