Riordan Manufacturer's Operations and Logistics

Topics: Supply chain management terms, Material, Materials Pages: 4 (1146 words) Published: October 11, 2008
Riordan Manufacturer’s Operations and Logistics

Riordan Manufacturer produces plastic beverage containers at its Albany Georgia, Plant, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts at its facilities in Hangzhou, China. The company’s Research and Development is done at its corporate headquarters in San Jose. In addition, the following text will include the operations in each of facilities mentioned and explore Riordans inventory management and quality control. First of all, at the Albany, Georgia plant where the plastic bottles are produced, contracts are negotiated with customers for yearly quantities of standard and custom unique bottles; however, customers can also provide release orders for smaller quantities throughout the year these orders are received randomly. Due to the variability of the sales of customer’s final products the Albany plant keeps a safety stock of the more popular standard containers for those customers that ask for them, however, the amount carried is a small amount due to the limited storage space. Similarly, the plant also keeps a safety stock of raw materials used to produce the bottles; by doing this it provides a degree of assurance that it will not have shortages that would preclude it from shipping orders on time. Moreover, it is up to management to decide on how much safety stock to carry because of the associate with inventory costs; this also insures there are no contract penalties imposed if the company misses a delivery date due to lack of materials. Furthermore, the company has a policy to provide total customer satisfaction in terms of committed ship dates; Riordan statistics for the last three years for on-time delivery has been at 96% the other 4% due to severe weather conditions beyond their control. Moreover, Riordan uses Huffman Trucking Company to ship all of its product in the U.S. so far the Albany facility has a good record of supplying customers...
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