Problem Solution: Kuiper LedaKuiper Leda Incorporated (KL) is an electronic component manufacturer based in the Republic of Novamia. The company specializes in the production of electronic control units (ECUs) and radio frequency identification devices (RFID tags) for the automotive industry. It is currently a relatively small company that focuses on product quality and responsiveness of delivery. KL is trying to better control its inventory and expand its customer base. Midland Motors, a large and well-known original equipment manufacturer, offered KL the opportunity to achieve these goals. Midland has chosen KL as the main supplier of all its ECUs and RFID tags. Midland Motors has signed a one-year contract with KL for 250,000 ECUs and 35,000 RFID tags to be distributed evenly over the next year. As the order from Midland Motor exceeds KL's daily capacity, KL must now reorganize its facility to increase capacity. They also need to consider and/or decide whether it is better to outsource the devices or some of their components. Situation Analysis Identifying Problems and Opportunities Midland Motors is a large company that has a reputation for maintaining close and long-lasting relationships with its suppliers. For KL it would be an unwise decision to refuse the order. After accepting the order from Midland, KL must first decide to produce everything in-house or outsource to meet the new customer's demand. A big problem is the lack of a structured process. With such a large order, KL needs to develop a system that allows them to take orders from other customers and meet the daily/weekly production of ECUs and RFID tags for Midland Motors. The next decision would be to create and implement an inventory system that will allow KL to track their inventory from when it arrives at the door to the point of shipping to the customer. Currently, KL does not have a set system and has high carrying costs for its inventory. This is an excellent time for KL to consider implementing a Just In Time (JIT) system into daily operations. Since the contract with Midland Motors lasts at least a year, they have an expected number to work with. Midland Motors expects monthly shipments from KL, this gives KL the opportunity to plan and forecast the inventory needed. Of course, they also need to keep in mind that they will still need to be able to fulfill orders from other customers who have previously placed orders or even from new customers.