For increasing profit company has to focus on sales figure. Kuiper Leda built a strong reputation with its clients / customer due to right quality, right quantity & right price. Kuiper's customers are having faith on kuiper's capability.
Kuiper decide to launch a new product knows as Radio Frequency Identification Devices (RFID). Initially kuiper's started with a very small setup for this device. And Kuiper is facing a problem in managing inventory for this new setup. The inventory cost is on the higher side. So Kuiper decide to decrease in inventory cost using effective operation management. Decrease in inventory cost will definitely increase the revenue of the company and its share holder / stock holder. Increasing the revenue of the company, automatically ensure the future growth of the company.
Kuiper Leda management team should need to focus on the adequate forecasting of inventory, so that the production process can be run smoothly, without increasing the inventory holding cost. This Effect the future growth of Kuiper Leda.
For achieving decrease inventory cost Kuiper Leda instruct the operation Management team to keep track of the production process. During the inspection of production process, team was asked to keep track on inventory also. This team has to focus on the production process & inventory, & need to found how much inventory is required for a specific order. Kuiper Leda asked its team to decrease in over heads in various department like in production, in quality, in inventory, in transportation.
Issue and Opportunity Identification
Reference to Specific
Kuiper Leda's main issues are the future growth of the company, & future growth of the company is depends on production, inventory, resources & order completion in time
To keep the cost down proper inventory management & increased in production is required. This process include to make a raw material store near to the company to keep transportation cost low, & material is available at the time of production process.
Removal of Extra production capacity means that only required material or process should be used in production.
Capacity of Raw material store should be adequate to handle incoming raw material.
Right forecasting of inventory for just-in-time to maintain effective inventory controls
(Aquilano, Chase & Jacobs, 2005, ch 8, pp. 60)
Inadequate inventory management
Need to make a effective Inventory management program
Forecasting of inventory for just-in-time to maintain effective inventory controls
Aquilano, Chase & Jacobs, 2005, ch 8, pp. 60)
Number of suppliers are too large
Need to develop a distribution centre
Increase communication with suppliers to prevent delays in product to increase production.
(Chase, Jacob, and Aquilano, 2006, ch 8, pp. 25).
Need to develop logistic Management System
Logistic will keep track on cost of delivery of finished goods
(Aquilano, Chase & Jacobs, 2006, ch 1, pp. 5)
Timeliness delivery of product
Need to develop a team who keep track on supply chain Management
Team will check each & every process