Regardless of how successful a line of work is, if supplies do not keep up with demands that business leave alone sire a difficult conviction to make internet without the needed sales. The reverse is also true when the supplies grossly put across demands as the excess inventory would result in tied(p) up money that could be employ for other projects or business plans. Therefore, the art of making the most of the inventory is to have the products available when and where they are needed.
Situation Analysis
Kuiper Leda (KL), operated out of the Republic of Novamia, is a manufacturer of electronic components, especially in the production of the electronic Control Units (ECUs) and the sensors for the automotive industry (University of Phoenix, 2009). For the past six months, KL has introduced the bran-new product line of producing the Radio Frequency Identification Devices (RFIDs) (University of Phoenix, 2009). KL has been in business for the past 10 stratums with an initial investiture of $100 million; and its revenue has reached $400 million this year (University of Phoenix, 2009).
Issue and Opportunity Identification
KL sources the components of its ECUs and RFIDs to many outside suppliers.
As KL relies on its suppliers to supply the raw materials, it needs to control its inventory tightly to ensure a smooth production of its electronic components. However, harmonize to Chase, Jacobs, and Aquilano (2005), All inventory systems are plagued by two major problems: maintaining adequate control over each inventory point in time and ensuring that accurate records of stock on hand are kept (p. 609). The three simple inventory control systems widely used are: optional replenishment system, two-bin system, and one-bin system (Chase, et al., 2005). Maintaining inventory by the methods of counting, placing orders, receiving materials and such takes up a great deal of time and resources; and because not all parts in the inventory is of impact value, the ABC inventory planning system would...If you want to turn back a full essay, order it on our website: Orderessay
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