Mba/550
...26, 2006
Situation Analysis and Problem Statement
Kuiper Leda is a supply chain manufacturer of Electronic Control Units (ECU) who also assembles Radio Frequency Identification Devices (RFID). These devices are used to facilitate inventory control for many companies. Midland Motors, an American Original Equipment Manufacturer (OEM) purchases these products in big quantities from Kuiper Leda as well as other OEM’s..
Kuiper Leda has been successful in the product lines it produces and distributes. The company has had an increase in customer base over the past few years and the company has developed an Enterprise Resource Planning (ERP) system to maintain its customer and supplier information. With the implementation of the ERP, Kuiper Leda understands that it is in the company’s best interest to use a leaner sourcing base to reduce administrative overheads and procurement costs. The process of determining which suppliers to use can be lengthy and initiating the process immediately is crucial to implementation of the ERP system. One important concept when implementing this system is to ensure proper backup of suppliers is available while keeping the sourcing base to a minimum.
Situation Background
Kuiper Leda has been supplying Electronic Control Units and Radio Frequency Identification Devices to Midland Motors and other OEM’s to manage inventory. Recently Midland Motors placed an order of 250,000 Electronic Control Units and 35,000 Radio Frequency Identification devices, a quantity that would be extremely beneficial to Kuiper Leda. The Electronic Control Units are used assist Midland Motors to facilitate inventory control in their factory and are placing their order to be distributed over a one year production cycle in order to benefit from volume purchasing.
Issue Identification
Kuiper Keda has been given an order for a substantial amount...
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