Kuiper Leda’s current supply chain strategy/process includes the following:
• Production Capacity
Company’s current production capacity is capable of handling load 83,250 units of ECUs and 58,900 units of RFIDs per annum. They are able to meet their delivery schedule and currently do not have any back log orders from the previous year. If the company’s production plant works overtime they can produce about 2000 extra unit of ECUs and 7000 units of RFIDs per annum. This implies that the company current production capacity might create a bottleneck but does create a shortage in production. Kuiper Leda can also increase their production capacity in future, but for the time being their production plant is an ideal plant.
• Forecasting for the required material
Company’s Material Requirement Planning (MRP) is based of the current production plan and Material Production Schedule (MPS) based on the past data. Since the annual maximum capability of the company is about 2000 unit of ECUs and 7000 units of RFIDs compared to their load capacity. It is clear that the forecasting performed by MRP is efficient, as it does not create shortage in the production.
Goldratt argues that although an organization may have many purposes providing jobs, consuming raw materials, increasing sales, increasing share of the market, developing technology, or producing high-quality products these do not guarantee long-term survival of the firm. They are means to achieve the goal, not the goal itself. If the firm makes money and only then it will prosper. When a firm has money, it can place more emphasis on other objectives (Chase, Jacobs, and Aqiulano, pg 722).
• Product quality
Kuiper Leda is progressing in the international market; this definitely indicates that the company produces quality products. Kuiper Leda had long-term supplier that is providing good quality products assisting in progress of the company. It is not mentioned if Kuiper Leda is...