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Working Capital Management Concepts Worksheet
Concept Application of Concept in the Simulation Reference to Concept in Reading
Just-in-time
Kuiper Leda Inc. in the Republic of Novamia is an electronic components manufacturer, who specializes in the production of ECUs and automotive industry sensors. The company has grown significant in the last two years resulting in a high demand for their products. By using JIT inventory systems, Kuiper Leda can produce the needed products and save inventory through carrying costs. Inventory control will be essential to Kuiper Leda success. "Just-in-time manufacturing uses classical production –consumption inventory designed to integrate activities to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods." (Chase, Jacobs, Aquilano, p. 589, 2005)
Forecasting and time series analysis
In order to meet customer demand, Kuiper Leda should forecast the needed changes in the production process. Forecasting is vital for Kuiper Leda since it will enable the management team to make sound decisions regarding products, schedules, staffing, and production. Using this system will allow Kuiper to use a time series analysis as part of the forecast inventory management process which will allow the most effective means of forecasting. "time series analysis, is based on the idea that data relating to past demand can be used to predict future demand or cyclical influences" (Chase, Jacobs, & Aquilano, p. 513, 2005)
Demand Management
Kuiper Leda recentl ...