Riordan's Forecasting Technique Case Study
Riodan’s Forecasting Technique
The demand globally for Riordan’s electric fans would be considered in a 12-month (4 quarter) forecast for a medium-term strategic forecast would be used. Which would show the planning and production scheduling in anticipation of customer demand and product positioning at decoupling points along its global supply chain. The only (one year) sales invoices that were available were the ones from 2005, and could be used for the 3-year average sales data to forecast for this project. It shows linear regressions, with undoubted trend decomposition techniques, which were based on 12 month intended time horizon and the average of 12 months of sales data. This data shows seasonal and linear trends that justify the …show more content…
Because Riordan employs at stable workforce strategy, the company will enjoy a continual workforce compatible with its production plan. The quarter-end 9/30/2005 inventory level is used to forecast the additional production necessary to meet 2006 sales goals.
According to Riordan, a ten percent increase in forecasted sales of electric fans is not overwhelming and will not affect its existing production strategies. The inventory on hand at 9/30/2005 is 86,400 fans, or 126% of the projected first quarter 2006 production levels. Because Riordan has employed this cushion, it will easily maintain a viable aggregate production plan with minor adjustments to its 2005 plan.
The master production schedule (MPS) at Riordan determines what parts will be needed on a weekly basis to meet the quarterly projected needs. Because Riordan uses a make-to-stock system, they are easily able to satisfy customer demand without production delays. A fixed-order quantity inventory method is used with an automated system to order parts when inventory levels drop to a determined level. A flexible time fence is utilized, as capacity remains unremarkable, and the majorities of Riordan’s suppliers are reliable and do not cause significant delivery
The demand globally for Riordan’s electric fans would be considered in a 12-month (4 quarter) forecast for a medium-term strategic forecast would be used. Which would show the planning and production scheduling in anticipation of customer demand and product positioning at decoupling points along its global supply chain. The only (one year) sales invoices that were available were the ones from 2005, and could be used for the 3-year average sales data to forecast for this project. It shows linear regressions, with undoubted trend decomposition techniques, which were based on 12 month intended time horizon and the average of 12 months of sales data. This data shows seasonal and linear trends that justify the …show more content…
Because Riordan employs at stable workforce strategy, the company will enjoy a continual workforce compatible with its production plan. The quarter-end 9/30/2005 inventory level is used to forecast the additional production necessary to meet 2006 sales goals.
According to Riordan, a ten percent increase in forecasted sales of electric fans is not overwhelming and will not affect its existing production strategies. The inventory on hand at 9/30/2005 is 86,400 fans, or 126% of the projected first quarter 2006 production levels. Because Riordan has employed this cushion, it will easily maintain a viable aggregate production plan with minor adjustments to its 2005 plan.
The master production schedule (MPS) at Riordan determines what parts will be needed on a weekly basis to meet the quarterly projected needs. Because Riordan uses a make-to-stock system, they are easily able to satisfy customer demand without production delays. A fixed-order quantity inventory method is used with an automated system to order parts when inventory levels drop to a determined level. A flexible time fence is utilized, as capacity remains unremarkable, and the majorities of Riordan’s suppliers are reliable and do not cause significant delivery