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Key to the success of Kuiper logistical plan is the strategic use of safety stock. Safety stock helps to protect against uncertainty in demand and supply. In the Kuiper scenario the team must maintain a high safety factor due to high service levels respected by the clients.
Use of the fixed order quantity model will help the organization respond to customer demands based triggered events...
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A fixed amount of microchips and ECUs are produced based on the customer demand. This new approach will help the organization's leaders to adjust inventory as new clients and larger orders are acquired. Kuiper's leaders are able to achieve this because their core business is controlled in-house. Thus the leaders are able to invoke a "shift in strategy, from sales people's dollar-based forecasts to forecasts of the volumes that customers would buy?" (Sangupta, 2004, p...
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