Kuiper Leda (Kuiper) specializes in the production of Electronic Control Units (ECUs), and its clients include automobile manufacturers and OEMs. Kuiper has recently entered into the Radio Frequency Identification Devices (RFID) line; this product line has been in operation for only a short time. Kuiper has the same supply chain management concerns as many companies do: resources, shop capacity, and deliveries of product.
Kuiper works with smaller customers and has a limited daily capacity of ECUs and RFIDs. Kuiper has built a strong reputation with its customers, and is known for quality and delivery responsiveness. Kuiper thrives on repeat orders and supplier relations, but the company is also working in a highly competitive industry and needs to be constantly aware of its competitors. Because of the large operating scale, Kuiper must focus on capacity management and delivery.
Fluctuating demand over the last few months has taken its toll on Kuiper's overloaded supply chain. There has been no uniformity in production in the plant, and suppliers have been struggling to meet Kuiper's requirements (Kuiper Leda Simulation). While Kuiper needs to be responsive, it also needs to ensure that demand does not affect the plant or its suppliers.
Because the recent overload has rendered its supply chain inefficient, Kuiper has implemented some changes. Kuiper currently uses the Material Requirements Planning software system. Material Requirements Planning (MRP) is a software-based production planning and inventory control system used to manage manufacturing processes (www.wikipedia.com).
MRP helps Kuiper simultaneously meet the following objectives:
â¢ Ensure materials and products are available for production and delivery to customers
â¢ Maintain the lowest possible level of inventory
â¢ Plan manufacturing activities, delivery schedules, and purchasing activities
Proper understanding and utilization of MRP will increase Kuiper's ability to manage its...