Supply Chain and Design
Riordan Manufacturing
Riordan Manufacturing is a fortune 1000 company that manufactures plastic fan parts, and other products in relations to plastics. The company had an expansion in 2000, when operations were opened in China. At that time, the entire fan manufacturing operation was in China. The following paper will discuss Riordan’s supply chain design applicable to manufacturing its electric fans
Riordan’s Manufacturing Strategy
Riordan manufacturing strategy is a combination of both chase and level. When the company produces enough goods to match the demand for goods, it applies the chase strategy. On the contrary, when Riordan continuously produces a product, it is using the level strategy. Riordan manufactures the fan parts based upon the forecasts from previous years. The company attempts to keep parts in stock to meet order demands. However, Riordan also manufactures customized fans. This means these are manufactured based upon consumer demand. The benefits of chase strategy for Riordan is it keeps inventories low and frees up cash to buy raw materials, and reduces costs associated with holding inventory in stock. The benefits of level production strategy are that if a company produces goods according to the demand, there is a consistent schedule for the goods.
Performance Metrics
Delivery performance is one metric that can be used to evaluate the performance of the electric fan supply chain. This metric is identified by the amount of consumers orders shipped upon consumer request. The number is based upon a percentage. Riordan on-time deliveries in the past year averaged 93 percent.
Another metric that can be used to evaluate the performance of the electric fan supply chain is inventory turnover. This can be defined as the measure of number of times inventory is sold within a time period. The equation for inventory turnover equals the cost of goods sold divided by the average inventory.
Supplier Locations Riordan Manufacturing
Riordan Manufacturing is a fortune 1000 company that manufactures plastic fan parts, and other products in relations to plastics. The company had an expansion in 2000, when operations were opened in China. At that time, the entire fan manufacturing operation was in China. The following paper will discuss Riordan’s supply chain design applicable to manufacturing its electric fans
Riordan’s Manufacturing Strategy
Riordan manufacturing strategy is a combination of both chase and level. When the company produces enough goods to match the demand for goods, it applies the chase strategy. On the contrary, when Riordan continuously produces a product, it is using the level strategy. Riordan manufactures the fan parts based upon the forecasts from previous years. The company attempts to keep parts in stock to meet order demands. However, Riordan also manufactures customized fans. This means these are manufactured based upon consumer demand. The benefits of chase strategy for Riordan is it keeps inventories low and frees up cash to buy raw materials, and reduces costs associated with holding inventory in stock. The benefits of level production strategy are that if a company produces goods according to the demand, there is a consistent schedule for the goods.
Performance Metrics
Delivery performance is one metric that can be used to evaluate the performance of the electric fan supply chain. This metric is identified by the amount of consumers orders shipped upon consumer request. The number is based upon a percentage. Riordan on-time deliveries in the past year averaged 93 percent.
Another metric that can be used to evaluate the performance of the electric fan supply chain is inventory turnover. This can be defined as the measure of number of times inventory is sold within a time period. The equation for inventory turnover equals the cost of goods sold divided by the average inventory.
Supplier Locations Riordan Manufacturing