Riordan's Manufacturing Strategy

Riordan's Manufacturing Strategy The Riordan Manufacturing Company utilizes the level strategy for their manufacturing and production planning. The process begins with the raw materials that are received by the receiving team who ensure all necessary materials are accounted for and this team moves the raw materials to the factory. The receiving supervisor then compares shipping documents against scheduled incoming orders for processing. These orders are then received by the inventory clerk and this person enters the information related to the raw materials receipts into the inventory system. The level strategy is beneficial for Riordan because they are able to maintain a stable workforce at all times, working at a constant output rate. This strategy offers a schedule that keeps the finished product moving at the same rate throughout the production cycle. Riordan can continuously produce their products equal to the average demand of the goods. In addition, employees benefit from this strategy because they are guaranteed stable work hours and the costs of potentially decreased customer service levels and increased inventory costs, (Jacobs, F. R. & Chase, R., 2011).

Forecasting Technique and Process The quantitative forecasting technique is the most practical for Riordan Manufacturing to utilize to determine the future sales for their electric fans. Quantitative forecasting is a statistical technique for making projections using data and prior experiences to predict those future sales based on past trends. (BusinessDictionary.com, 2014). Riordan's China plant prepares its own forecast of electric fan sales that take place throughout the world. Their make-to-order stock process forecasts its demand for the fans based on the average sales in the previous three years and anticipate the same for upcoming years.