Supply Chain Design Paper
February 25, 2015
For this week’s assignment, Learning Team A was assigned the task of reviewing Riordan Manufacturing, Inc., a virtual organization wholly owned by Riordan Industries. This company produces plastics for customers all over the world. Our team will cover the manufacturing strategy, performance methods, supplier relationship, and lean production. Lastly, our team has developed a future sales forecasting plan for Riordan as well as an aggregate production, master schedule, and materials requirement plan. After thoroughly researching the manufacturing company Riordan, we have determined the company uses a combined strategy of both chase and level. The chase strategy is best described as production meeting demand and capacity from one period of time to the next (Jacobs & Chase, 2011). By keeping inventory low, the chase strategy allows the company to use money that is freed up to purchase items such as raw materials, if needed. Whereas the level strategy, the amount of goods produced are equal to the demand. An example of this is Riordan wants to produce 30,000 plastic beverage containers over the next 60 days. On average, to meet the demand, Riordan would have to produce 500 containers a day to meet the level strategy of demand. Ideally, when there is no inventory and demand is unpredictable, the chase strategy would be used best (Cohen & Roussel, 2013). For Ridoran, this can sometimes be the case, but not often which is why the level strategy is also used in conjunction. The overall benefit of this mix empowers enhancement of objectives and lower expenses more so than freely. Organizations and companies inside the administration business that utilize this method are in a sense demand matching which implies that the workforce must match the demand (Chopra & Meindl, 2013). Riordan Manufacturing will execute another process for their supply chain in the future, that will keep a deficiency or excess of generated materials, diminish material waste, reduce back orders, and increase sales. Right now with the current system, the worker is measuring the measure of crude materials utilized day by day. At that point, the representative gives the data to the stock agent. The new supply chain process will not only increase sales, but will dispatch a modernized framework that will compute the utilization of materials. This will diminish human lapse and give input all the more rapidly. The satisfaction of requests is proficient in diverse stages. The new system will deliver precise aggregates of crude materials and stock for the company. Attachment 1 provides the projected sales forecast for Riordan Manufacturing. Metrics are an important aspect of monitoring the supply chain so that it is efficient and delivers high quality and value to customers (Jacobs & Chase, 2011, p. 39). One metric used to evaluate the performance of the electric fan supply chain managed at Riordan’s China location are its on time deliveries over the past year, which average about 93% (Riordan). This metric reflects an aspect that slow down the supply chain which results from the purchase of parts required for assembly from a third party. Another metric that Riordan’s uses to evaluate its performance is the final cost of production quantity of the fans which is determine after its development is created (Riordan). This metric is also dependent upon purchasing supplies from a third party. Riordan has a very dependent structure of relationships with its suppliers. These relationships have a direct impact on its supply chain. The supplier relationship supply parts such as electric motors and plastic polymers used in the creation of its electric fan and bottle products. They have to keep in continuous communication with suppliers to ensure the appropriate levels of components are being purchased and shipped to Riordan. Communication is essential as Riordan uses local suppliers as well as...
References: Chopra, S., & Meindl, P. (2013). Supply chain management: Strategy, planning, and
operation (5th ed.). Boston: Pearson
Cohen, S., & Roussel, J. (2013). Strategic supply chain management the five core disciplines for
top performance, second edition (2nd ed.). New York: McGraw-Hill Education
Jacobs, F. R., & Chase, R. (2011). Operations and Supply Chain Management (13th ed.).
Boston, MA: McGraw-Hill Irwin.
Riordan Intranet Page. University of Phoenix.
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