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: Gap Analysis:

Managing Inventory in a Supply Chain
Inventory management involves planning and controlling inventory from the raw material stage to the final delivery at the customer's end. Inventory should be considered at all levels of planning, so it automatically becomes a part of production planning, master production scheduling, and material requirements planning-all essential supply chain activities.

Businesses rely on suppliers for raw materials and other inputs that are required to manufacture their products. They need to manage their production schedules well if they need to keep their commitments to the customer. This is where inventory management comes in-businesses not only need to have enough supplies for the finished product, but they also in a position to handle excesses or shortage of supplies or inventory.
Gap analysis compares a company's actual performance with their potential performance. In the case of Kuiper Leda, their production inadequacies lie in supply chain management system, production planning and inventory tracking. Effective Supply Chain Management enables an in depth understanding of the interactions between the various manufacturers, consumers, distributors and suppliers. In order to increase the shareholders wealth and create opportunities for success the various organizations involved in the supply chain must work together.
KL is a relatively smaller company that has received an opportunity to get noticed by the big companies in the automobile industry if it effectively meets the capacity demands of Midland Motors. The Supply Chain process refers to the processes from the raw materials to the consumption of the finished product including supplier user companies. The process consists of six steps namely-
1) The production Plan
2) The Master Production Schedule (MPS)
3) Materials Requirements Plan (MRP)
4) Capacity Requirements Planning (CRP)
5) Production Activity Control (PAC)
6) Delivery
After the MRP is ready a detailed...