Week 3 Team Assingment

Topics: United States, Economics, Forecasting Pages: 2 (378 words) Published: April 6, 2013
Kathleen’s Part Week IV Team Assignment
* Estimate which competitive strategies Riordan could use to improve innovation and sustainability of business operations both in the United States and in the global market.

Riordan could increase innovation and sustainability for the business operations in the United States of America and globally by implementing a strategic capacity plan. This plan will increase effectiveness, add improvement to its supply chain, and implement the methods and concepts of lean production to gain value and over time help sustain competitive advantage. Strategic capacity planning starts with better use of resources by reducing trade deficit, a factor that continues to reduce estimates for economic growth. The electric motors used in the fans are completely assembled units. Regardless of the contracts it receives for yearly quantities of bottles that each customer orders, the customers actually provide release orders for smaller quantities throughout the year against the yearly totals. These release orders are received at random since each customer's requirement for bottles varies as a function of the variability of the sales of the customer's final products that use the bottles.

They are purchased by buyers in the China Plant's purchasing department from a local Chinese company. While this company attempts to maintain adequate quantities of electric motors in stock to meet all its order requirements, its on-time deliveries over the past year have averaged only 93%. This part of the plant's business is a make-to-stock operation in which the future demand for fans is forecasted based on taking the average of sales for the last three years and extrapolating it into the next year. The assumption in using this forecasting method is that history will repeat itself within manageable limits.

Consumers are adjusting to the reality that oil prices will remain high rather than being a temporary event, and even if oil prices fall the...
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