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Supply Chain Design Case

Autor:   •  September 29, 2014  •  Case Study  •  1,711 Words (7 Pages)  •  1,406 Views

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Supply Chain Design

Riordan Manufacturing is a Fortune 1000 Company. Riordan is "An industry leader in the field of plastic injection molding" (Apollo Group, 2013). Riordan manufactures products such as fans, heart valves, and stents. This paper will describe the design and strategies Riordan Manufacturing utilizes during the productions of fans. The first topic in the paper will explain the manufacturing strategy and benefits the organization uses. The paper will include a process flow diagram for the electric fan supply chain along with two metrics that will evaluate the performance. The second topic will describe the supplier relationship and effects on the supply chain. The third topic will be a description of how lean production principles are used. Topic four is the business forecasting technique whether, qualitative or quantitative. The paper will also include a sales forecast for electric fan using the chosen technique in forecasting. The paper will end with an aggregate production plan, master schedule, and materials requirement plan. "Riordan Manufacturing has the capacity and technology to meet your unique needs" (Apollo Group, 2013).

Manufacturing Strategy

Riordan Manufacturing implements a combination of chase and level strategies. Riordan has four different supply chains. The manufacturing plants in Albany, Pontiac, and China do not have similar supply chain problems. Albany and Pontiac implement the level strategy. Hamlett (n.d.), "In a manufacturing company that uses a scale production strategy, the company continuously produces goods equal to the average demand for the goods" (Level production). Riordan receives annual contracts for a set amount of bottles. These contracts are fulfilled as the customer needs them by release orders placed at various times. Riordan must have inventory on hand when the orders are places. "As a consequence of receiving releases at varying times the Albany plant keeps a safety stock of the most popular standard containers for those of their customers that use them" (Apollo Group, 2013). The Pontiac plant uses a similar strategy. However, the China plant used the chase strategy because it fulfills orders for the electric fans based on customer demand. "This part of the plant's business is a make-to-stock operation in which the future demand for fans is forecasted based on taking the average of sales for the last three years and extrapolating it into the next year” (Apollo Group, 2013).

Supplier Relationship and Effects of Supply China

Riordan Manufacturing employs 550 people with projected annual earnings of $46 million. The products line includes plastic beverage containers which are produced in the Albany plant, and customs plastic parts are produced in Pontiac and Michigan plants. The plastic


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