Riordan Manufacturing Solution Evaluation

Executive Summary Riordan Manufacturing has requested assistance to provide specific recommendations for improving their inventory system. The objective for this service request is to analyze the current processes in inventory and define business requirements for system upgrades and improvements. Business requirements were established using a set of metrics to evaluate three options for improving inventory practices at Riordan. The three options evaluated are Enterprise Resource Planning system (ERP), Materials Requirements Planning (MRP), and Vender Managed Inventory (VMI). The metrics allowed the three systems to be scored based on the priority of business requirements, which provided the basis for recommendations to Riordan. In addition to using a metrics table to evaluate the three systems, the evaluation team utilized a Gantt chart to develop implementation timelines for project management, assessment, hardware/software installation, user training, and software support. Riordan Manufacturing advised the consulting team of their constraints of a one million dollar budget with a one year implementation deadline. The team also completed an analysis of the return on investment (ROI) for the MRP solution. This analysis proved that the MRP solution would greatly reduce inventory costs for Riordan. Taking into account the business requirements and parameters set by Riordan, the consulting team can make a recommendation. After careful analysis using measurable metrics the consulting team recommends Riordan implement a MRP system to improve their inventory processes of raw materials. The metrics table scored the VMI system slightly better then the MRP, but when selecting a system he or she must consider all factors. The metrics revealed the MRP hardware would cost more then the VMI hardware, but the MRP system scored better in the integration and software requirement column. Riordan has two plants in the United States and one in China, so integration

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