Supply Chain Design Paper

Supply Chain Design Paper

OPS/571

2015

Supply Chain Design Paper

Team C studied the design for Riordan Manufacturing, a global plastics manufacturer. This paper outlines Riordan demographics, supply chain, logistics, and production concerns to provide a better understanding of Riordan’s supply chain (University of Phoenix, 2013). 

Manufacturing Strategy

        Riordan’s Manufacturing utilizes a level manufacturing strategy to produce electric fans.  A level manufacturing strategy maintains a stable workforce while working at a continuous productivity rate. The utilization of a level manufacturing strategy allows shortages and surpluses to be absorbed by changing inventory levels, backlogs of orders and lost sales.  Employees benefit from stable work hours. Electric fan production is based on a three-year average combined sales forecast. A small inventory is kept on hand for changes in demand.   Production is set at a fixed rate to meet normal demand levels and inventory is utilized to absorb changes in product demand.

Performance of the Electric Fan Supply Chain

        Two metrics to evaluate performance within Riordan Manufacturing’s electronic fan supply chain are on-time delivery performance metric and a supplier scorecard. Metrics concentrate on tangible performance. On-time delivery (OTD) compares actual contrast between actual delivery, delivery appointments and planned delivery. Satisfaction is measured using this performance metric. OTD measures the amount of finished electronic fans Riordan delivered on time. This metric will help Riordan verify how efficiently the company is meeting agreed deadlines. The second performance metric Riordan can utilize is the supplier scorecard. A supplier scorecard manages, measures and analyzes supplier performance to reduce costs, alleviate risk, and direct continuous improvements in value and operations. Stakeholders and customers complete surveys and questionnaires regarding supplier performance. Scorecard metrics include quality, delivery, responsiveness, cost, and innovation, customer complaints, corporate social responsibility, and risk (Trent, 2015).

Supplier Relationship[pic 1]

[pic 2]

Type of Relationship

Riordan's manufacturing process includes a make-to-stock operation.  The projection for present year's sales is based on the average of the three-year sales figures.  Riordan also designs customized electric fans worldwide. All fans are assembled in one location.  

Supplier Location, Size of Company, and Financial Stability

The original assembly plant was in Michigan, but was relocated to China to be closer to. Riordan's Chinese partners who have facilities close to the Qiantang River. Proximity to the river is sufficient to handle expected shipping needs.  Riordan's projected income for next year is $46 million. In the United States, Riordan has 300 employees and employs another 250 people with a joint venture in China.  Riordan's major customers and markets include; automotive parts manufacturers, aircraft manufacturers, beverage makers and bottlers, appliance manufacturers, health care, and the Department of Defense (University of Phoenix, 2013).