The initial problem of Kuiper Leda Company lies in the production capacity that can not meet the demand from its expanded consumer base. The resultant situation of the recent overload has rendered its supply chain inefficient. This contradicts the law of efficient supply chain which states that supply chain is a network of facilities and distribution options aimed at performing the functions of procurement of materials, transformation of these materials into intermediate and finished products, while facilitating the distribution of these finished products to customers to create value for the company’s products. Failure by a SC (supply chain) to accomplish these three essential areas of an effective SC awakens the need to streamline the existing SC that applies in this case.
Furthermore, the current source for the challenges that face Kuiper Leda Company originates from its design of acquiring the material necessary to produce RFIDs and ECUs. Kuiper Leda Company obtains ECUs and RFIDs production materials through in-house. But, it’s a common knowledge that such high order placement from Midland Company of 35,000 RFID tags and 250,000 ECUs and others, in-house can not be of great help towards its remedy. Unfortunately, Kuiper Leda Company is not focused towards mass or large scale production that can meet the increased demand of these voluminous orders.
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