Gap Analysis: Kuiper Leda Kuiper Leda Incorporated (KL) is a relatively small company that produces electronic control units (ECUs) and radio frequency identification devices (RFID tags) for automotive industry. They focus on the quality of their products and responsiveness of deliveries, and their customers include automakers and original equipment manufacturers (OEMs). Midland Motors, a well-known large company, has signed a one-year contract with KL as the supplier of all its ECUs and RFID tags. KL needs to organize its facility to increase daily capacity to handle Midland Motors' order of 250,000 units of electronic components and 35,000 labels for radio frequency identification devices. KL must also decide whether to outsource all or part of the necessary component. Situation Analysis Identification of Problems and Opportunities Kuiper Leda is a small electronics manufacturer specializing in electronic control units (ECUs) and sensors for the automotive industry. Kuiper Leda currently produces 250 RFIDs and 1,250 ECUs in one production day. The company recently received an order from Midland Motors to supply 250,000 electronic control units (ECUs) along with 35,000 radio frequency identification device (RFID) tags. Midland Motors is a large company that maintains a close and long-lasting relationship with its suppliers; it would be a devastating decision to refuse their order. The current order is higher than the KL plant's existing capacity level to handle. The situation presents KL with an opportunity to develop a plan to strengthen its reputation in the industry by increasing its capacity levels. One of the key responsibilities of operations management is to provide the capacity to meet future and current demand. Kuiper Leda lacks effective inventory management to adequately handle increased demand for inventory and production. An inventory management plan would be able to predict errors in production, service levels required by the customer, total lead times in producing a unit or batch of product, and priority of demand. Stock control is currently a challenge due to the size of the order from Midland Motor. To meet demand the company must increase inventory, which increases inventory costs. KL has the opportunity to use the Just - In - Time method of inventory control which eliminates waste by making resources and labor available only in the required time and quantity. It will help increase productivity, product quality and work performance, while saving inventory costs for the company. (Curtin, 2008). Kuiper Leda must also keep in mind that it will still have to process orders from other customers who have placed orders previously or even from new customers.