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Kuiper has to outsource the ECUs because the company does not have ample lead time to outsource the RFIDs. In Kuiper’s case, outsourcing would assist in reducing costs of good sold and allow for achieving production targets. Therefore, outsourcing the production of ECUs would be the most optimal solution for Kuiper and its clients...
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JIT lets manufacturers, such as Kuiper Leda, purchase and receive components just before the components are needed on the assembly line. As a result, the cost and burden of storing and managing idle parts are minimized. JIT philosophy is an effective strategy that helps in improving efficiency and profitability...
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