Explore BrainMass

Gap Analysis - Kuiper Leda

Kuiper Leda Scenario Gap Analysis - Supply Chain Management: MBA 550

Situation Analysis, Issues and Opportunities in the Kuiper Leda Scenario.

Solution Preview

Situation Analysis

The issues facing KLI are common in many businesses today. The company has been in operation for 10 years with an assembly plant that assembles ECUs and a production line dedicated to microchips. They have recently entered into another product line - Radio Frequency Identification Devices (RFID). KLI recently received a large order for ECUs and RFIDs from Midland Motors. This order would greatly benefit KLI as Midland Motors is considered a major auto. The existing capacity at KLI is insufficient to handle the increase load of request and KLI will need to find ways to meet the sudden increase in requirements. Whether to manufacture one or both products in house, or outsource some of the products are questions that need to be answered. The main events that led me to understand and identify the issues and opportunities are the lack of successful principles of inventory management in the scenario.

 The sales forecasting of KLI is not accurate and efficient: Sales forecasting or demand management is one of the major principles of inventory management. Forecasts are the basis of planning for the future and are vital to every business organization and for every significant management decision. "Production and operations personnel use forecasts to make periodic decisions involving process selection, capacity planning, and facility layout, as well as for continual decisions about production planning, scheduling, and inventory" (Chase et al, 2006). Some of the questions asked when forecasting includes: will the expected changes in the general economy affect the forecast? Are there changes in industrial and private consumer behaviors? Will there be a shortage of essential complementary items? Demand management also come into play in this context. Organizations need to take an active role in managing both their dependent and independent demand. Taking an active role includes applying pressure to its sales force, offering incentives to customers and to personnel and offering ...

Solution Summary

This paper focuses on the situation, issues and opportunities in the Kuiper Leda Scenario (MBA 550) and supply chain management.