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Supply Chain Design

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Supply Chain Design Paper
OPS/571 Operations Management

Supply Chain Design Paper
Supply Chain Strategy, Riordan Industries
Supply chains are adapting and upgrading to new technologies around the world. Supply chain management and strategies will be discussed to new hires in Hangzhou, China. Riordan Manufacturing can use the supply chain management theory to help each function in the supply chain connect and become more efficient. Riordan Manufacturing plans to use a competitive strategy and “go green.” Riordan’s customer fulfillment mission is to “strive to be a solution provider for our customers and not be a part of our customer’s challenges” (University of Phoenix, 2013, p. 1). Riordan Manufacturing wants new hires to use process thinking to achieve improvement in business practices and enhance the way tasks are done.
Process Flow Diagram
Electric fan manufacturing is one of the key sectors of Riordan Manufacturing with its plant located in China. In essence, the company conducts the fan assembly process from within and outsources non-core operations. The motors and plastic polymers are completely assembled and purchased from local Chinese company, whereas the logistics are outsourced to a local shipping company or FedEx. The operations done inside the company only include the creation of individual plastic parts of the fan, the assembly of the parts, packing of the fans, and temporary storage until the fans are shipped to the consumers. The summary of the supply chain process may be seen in Figure 1.

Figure 1. Supply Chain Process Flow Chart
Strategy
The internal policy of the organization involves the use of make-to-stock operation, in which demands are forecasted from the average of previous sales. The company manages to meet the demands by means of buffer stock or spare inventories, which would be used to meet the unexpected demands from the

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