As a part of Riordan’s new total systems process design, it is imperative that we examine our present stable supply chain process for the manufacturing of electric fans at our plant located in Hangzhou, China. The current supplies available for retail and wholesale purchase in the China plant consist of electric fan motors, fan parts made from plastic polymers, and assembled fan units. The motors are purchased from a local Chinese company as completely assemble unit and are stoked for purchase (University of Phoenix, 2012). Local suppliers are also used to purchase the plastic polymers that are used to make various fan parts. The production schedule of the assembled fans is a portion of the make to stock operation. It is presently designed to accommodate forecasted sales. The assembled and packaged fans are available for distribution and customer pick up. In addition to meeting the demand of the Chinese market, the plant also designs custom fans, on a contractual basis, for customers in the global market based on the customers estimated annual demand with allowances for random periodic orders. Delivery methods depend upon the size and destination of the orders and comply with local, national, and international laws and policies (University of Phoenix, 2012).
Moving forward with a new system process design dictates the need to make minor changes that will yield a significant improvement in our supply chain process. We will transition from a forecasting method of production to an agile supply chain process. Last year our on-time deliveries average 93% as the result of an inadequate supply of motors. An agile supply chain process will allow us the flexibility to be responsive to the needs of our customers and minimize the risk of shortages and disruptions of supply (Chase, Jacobs, and Aquilano,2006). Further, an agile process will eliminate much of the difficulty associated the periodic orders placed by our contractual customer. We will install mechanisms to...
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