Essay: Effective Outsourcing-Kuiper Leda Company
In order to effectively choose the product to be outsourced between the ECUs and the RFIDs, the firm has to put on the weighing machine three aspects. These aspects are the essentials that would facilitate for the production through outsourcing option effective and value oriented. These vital elements that enhance value for outsourcing option are costs, lead time, and capacity. In this regard, the firm can efficiently outsource the Electronic Control Units since the company does not have ample lead time to outsource the Radio Frequency Identification Devices.
Practically, Outsourcing the Radio Frequency Identification Devices would require 3 weeks while producing it in-house would need 2 weeks only. Additionally, Kuiper Leda Company in its production capacity for the first quarter cannot exceed the 79,297 Electronic Control Units-capacities. Therefore by outsourcing production of ECUs it will still concentrate on the production of the RFIDs well, it would result allow for achieving production targets and reducing costs of good sold. Hence, proves to be the most optimal for both the customers and Kuiper Leda Company.