Problem Solution: Kuiper Leda
University of Phoenix
Resource Optimization
MBA 550
Marc Mosko
Nov 3, 2008
Problem Solution: Kuiper Leda
In this paper, the writer will create a plan which optimizes Kuiper Leda, Inc. (KLI) supply chain and develop metrics to assess the effectiveness of the company’s supply chain. The writer will discuss companies that have been benchmarked which had similar issues as KLI and how the company’s leaders eradicated his or her company’s issues.
Situation Analysis
Issue and Opportunity Identification
According to the University of Phoenix (2008), KLI in The Republic of Novamia is an electronic components manufacturer, which specializes in the production of Electronic Control Units (ECUs) and sensors for the automotive industry. KLI’s clients include automobile manufacturers and Original Equipment Manufacturers (OEMs) for the automotive industry. The company has been in operation for 10 years – it began with an investment of $100 million and the revenue this year has topped approximately $400 million. KLI has an assembly plant that assembles ECUs and a production line dedicated to microchips.
The company entered into another product line – Radio Frequency Identification Device (RFID) Tags. KLI has been working with small customers and has a daily capacity of 1,250 units for ECUs and 250 units for RFID tags. The company has received a large order for ECUs and RFID tags from Midland Motors – an American OEM. Midland Motors has placed an annual order of 250,000 ECUs and 35,000 RFID tags to facilitate inventory control in the company’s factory. This order would greatly benefit KLI as Midland Motors is considered a major auto (University of Phoenix [UOP], 2008).
The existing capacity at KLI is insufficient to handle the increase of request and KLI need to find ways to meet the sudden increase in requirements. KLI’s leaders have to determine whether to manufacture one or both products in house, or outsource some of...