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Riordan Manufacturing: Supply Chain Design Paper

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Riordan Manufacturing: Supply Chain Design Paper

Riordan Manufacturing, a leading global manufacturer of plastic containers, parts, and fan parts, is wholly owned by Riordan Industries, Inc. Riordan’s fan manufacturing plant was purchased in 1992 when it was located in Michigan. In 2000, the company moved its fan manufacturing operation to China where it now resides. Riordan schedules manufacturing of fan parts based on forecasted production needs using an averaged three year sales history. Riordan’s make-to-stock system benefits customers who need products quickly with orders filled from inventory when received. Riordan employs a robust shipping department including a variety of reliable shipping solutions from the plant in China to worldwide customers.
Riordan Manufacturing’s electric fan production plant is continually analyzing its strategies. Process flows, performance metrics, supplier relationships and supply chain efficiencies, lean production principles, and sales forecasting are essential to the success of Riordan. The company uses reports and plans for material acquisition, production, and scheduling in its manufacturing facilities.
Riordan’s Manufacturing Strategy
Riordan’s manufacturing strategy is a stable workforce for two reasons; first, “it schedules production of fans to meet the forecasted sales” and the forecast is calculated by “taking the average of sales for the last three years and extrapolating it into the next year” (Riordan Mgf. Operations - Supply Chain (Hangzhou, China), 2014). Second, according to the Riordan’s Employee Turnover Report 2009-2012, the actual percentage of involuntary separations has decreased from 3.4% in 2009 to 2.0% in 2012. This marginal decrease in involuntary turnovers indicates Riordan is maintaining a stable workforce. Riordan benefits from this strategy because “this strategy provides workforce…...

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