Premium Essay

Riordian Manufacturing

In: Business and Management

Submitted By vochoa318
Words 509
Pages 3
Make to Stock Strategy
Riordan Manufacturing implements the make to stock strategy in their business. This strategy involves having the manufacturing company match production with consumer demand forecasts. This strategy forecast demand to determine how much stock should be produced. (Jacobs & Chase, 2011). This strategy is beneficial to the company because the fans are seasonal and it allows the company to produce the product during the slow season and can be used during the peak season. This allows for the process to run at a constant rate throughout the year (Jacobs & Chase, 2011). Riordan manufacturing forecast the demand of fans by taking the average of sales for the last three years and extrapolating it into the next year (rorodan 2013). Riordan believes that the same amount of sales will be estimated for the future years. In order to focus on ways to improve Riordan’s current method of operation is by forecasting the customers demand in order to minimize waste Cite tiorodan.). Riordan Manufacturing employs about 550 employees and has projected annual earnings of $46 million. Their sales and production levels fluctuate slightly month over month (Riordan Manufacturing, 2013). Riordan has a stable work force and has enough employees to be able to produce the demand for the goods. Riordan hires the right amount of employees to avoid the tangible and intangible costs of hiring and laying off employees due to not needing them. This strategy allows the company to be able to focus in meeting the demand for the goods and not needing to provide overtime to its employees or have to invest additional money in training new employees. This strategy can have a drawback if Riordan has inaccurate forecasts causing having excessive inventory.
Supply Chain Metrics
Metrics are used to tell a firm how the progress is flowing. Two metrics used to...

Similar Documents

Free Essay

Riordan Manufacturing

...Currently Riordan Manufacturing has several different offices and each office is using a different type of system, but there is not a central system that monitors each of the satellite offices and their production. To assist Riordan become more efficient, they will need to implement a central system to monitor both individual and overlapping system usage. They should create a Data Center in the corporate office that monitors all of the current systems in place. This will allow Riordan Manufacturing to understand how their business is functioning and how application are used more often and which are not utilized enough, helping to determine if they should upgrade or discontinue the use of a system. Each department uses different applications; some of the applications interface with one another and other are stand alone. Riordan also currently has a lot of manual processes, for example how they submit daily inventory records. With the overall updates that our team has posed have more automation will assist Riordan to increase their production and accuracy. We can implement an application that can be used by all of the centers in order to maintain the inventory across the board so the managers are able to see what is in high demand in specific locations. Having an overall view of the inventory will be beneficial to the entire company. If the marketing department has he ability to see the inventory usage then they will know where they need to market certain products better. We...

Words: 420 - Pages: 2

Premium Essay


...Running Head: Process Design for Riordan Manufacturing Process Design for Riordan Manufacturing: Inception to Production Planning Writer’s Name Course Name, Semester No, Class Level Supervisor Name September 23, 2009 Introduction The present paper discusses the proposal package for Riordan which handles each step of electric fans from inception to production. It includes the material requirement planning phase of fans being manufactured at the China Plant. There is further analysis of existing process for the production of the Riordan electric fans. It provides the basic outline for designing the new process to remove the bottleneck in the process to optimize it for meeting the demands of customer by supply-chain concepts. Production forecast for the Riordan electric fans is discussed along with implementation plan of Lean Production using Gantt Charts. Finally, cover letter describes the coordination of aggregate operations planning and suggested TQM process to define the strategic objective of the company. The MRP for the Manufacturing of the Riordan Electric Fans The China plant of Riordan Manufacturing is the production unit which applies material requirement planning to meet the time-phased requirement of material for assembled units or fan production operations. Raw materials are collected at receiving departments. These are processed to make it suitable for molding departments. The molded unit acts as input for trimming......

Words: 1823 - Pages: 8

Premium Essay

Supply Chain Design

...Team B Week Four: Supply Chain Design OPS/571 March 4, 2014 Team B Week Four: Supply Chain Design Riordian Manufacturing is a manufacturing company specializing in the production of plastic products and fans. The fan manufacturing plant is located in Hanzhou, China. The manufacturing of the fans is a make-to-stock operation. Future demand for the fans is forecasted based on the average sales of the last three years. Inputs for the production of the fans are acquired locally. The China plant uses the services of a local Chinese shipping company for delivery of goods. The plant uses FedEx or another Chinese shipping company for international shipments. Process flows, performance evaluation metrics, supply chains, lean production principles, and forecasting are all components in maintaining the success of Riordian Manufacturing. Supplier Relationships and the Effects on the Supply Chain Riordian Manufacturing’s plant in Hangzhou, China requires two major inputs for the electric fan production process. The first is high-density polyethylene plastic pellets (HDPE). Not much is mentioned on Riordian’s intranet other than the HDPE is purchased locally. The second major input is the electric motors that power the fans. The motors are produced locally by the Yin Motor Company (YMC). The Yin Motor Company became Rioridan’s supplier due to previous business or family relationship between YMC and Riordian’s partners in China. Rioridan receives the electric......

Words: 2220 - Pages: 9

Premium Essay

Danshui Case Study

...Table of Contents INTRODUCTION AND MAIN ISSUES 3 ANALYSIS 4 Qualitative 4 Quanitative 5 Breakeven Point (BEP) 5 Flexible Budget 6 Variances 7 RECOMMENDATION 8 Encourage, motivate, reward and recognize 8 Cellular Manufacturing System 8 Implement new accounting method 9 Extend the contract 9 ACTION PLAN 10 REFERENCES 12 INTRODUCTION AND MAIN ISSUES Danshui was a contract manufacturer that assembled electronic products for companies wishing to save labour costs by locating in southern China. Because of high demand for iPhone 4, Apple had contracted with Danshui to assemble iPhone in Plant No. 2. The contract need Danshui to assemble 2.4 million iPhone in the period between June 1, 2010 and May 31, 2011. Wentao Chen, manager of Danshui Plant No. 2 was worried because in the third month of the contract production was only 180,000 units per month. Suppose to produce 2.4 million iPhone its need 200,000 units per month. After preliminary budget has come out, the company loss of $672,000. The main issue of this case is the break contract between Danshui and Apple. The contract called Danshui to assemble 2.4 million in the period of one year, but Danshui only can produce 180,000 units per months. If Danshui still can produce that amount, it can’t reach 2.4 million in one year. This might happen because Danshui cannot find people to hire, even though they have raised wages by almost 30%. Another reason is they have problem with......

Words: 2251 - Pages: 10

Premium Essay

Tank Master

...then labour hours. Labour hours Machine hours Standard products (high volume) 2500 3500 Specialised products (low volume) 1500 3000 Total 4000 6500 Difference Budgeted labour rate 42,5 279500/6500=43 -0,5 Budgeted overhead burden 149,825 599300/6500=92,2 57,625 Total Cost 192,325 135,2 57,125 2) As known, the most commonly used allocation base in traditional costing is direct labor hours. We can also see this in the case. But at this point, we may face with some problems such that in this process overhead is increasing while direct labor is decreasing. There is an 1800$ increase whereas 46% increase in the overheads dramatically. Moreover, we see a variance and complexity in the production process. Tankmaster Manufacturing Company is producing to distinct products which are standard and specialised products. While, standard products have a higher labour hours/machine hours ratio (2500/3500), specialized products' ratio is (1500/3000). So, we understand that standard products use more labor force whereas specialized products use more machinery. This indicates that a plantwide overhead...

Words: 444 - Pages: 2

Premium Essay

Manufacturing Essay

...and Personal Computers. With the huge demand for their products, there comes an enormous responsibility for manufacturing the devices in a quick and cost effective matter. With the rapidly growing market of Apple computers and the technology/electronic industry as a whole, Apple eventually had to rethink how they manufactured their products to create the most efficient outcome; the highest revenue with the lowest cost. The competitive nature of the technology industry causes companies to look for a competitive advantage, which will make them much more profitable than their competitors. For the majority of the company’s history, they have been known to manufacture their products in the USA and even prided themselves with building the Macintosh computer which Steve Jobs described as “a machine that is made in America”. In 2004, when the company was not nearly as financially profitable as they are today, they decided their best option was to start manufacturing their products in other countries. The company, who is now a leader in foreign manufacturing, was lagging behind many American companies in terms of manufacturing abroad at that point in time. The majority of their foreign manufacturing takes place in Asia, specifically in China. In the New York Time’s article, “How the U.S lost out on iPhone Work,” Charles Duhigg described Apple’s move to foreign manufacturing from the words of a former Apple executive, “For Mr. Cook, the focus on Asia “came down to two things,”…......

Words: 1270 - Pages: 6

Free Essay

Nothing Special - Free Term Papers, Essays and Research Documents The Research Paper Factory Join Search Browse Saved Papers Home Page » Business and Management Steel Industries of Bangladesh In: Business and Management Steel Industries of Bangladesh STEEL INDUSTRIES OF BANGLADESH REPORT ON FOCUS The report “Bangladesh on its way of becoming self sufficient in rod production, export is also a possibility” by Shuvankar karmakar, that was analyzed here, was published in the Daily Prothom Alo, on 17th November, 2012. BACKGROUND Bangladesh Steel industry is emerging as one of the major industrial sectors of the country. It consists of small up to the largest scale of steel melting and re-rolling factories across the country that mostly produce deformed bar rod of different grade (40, 60, 500), angel, channel and coil for the construction industry. Though the history of Steel Industry is not older one but it can make a glorious future. Before 1971 Bangladesh did not have any steel mill and even after the liberation there were only a few steel factories in the country. In 1990s the actual development began in this sector through a revolution. During that period the building constructing agencies or developer companies came forward to build modern infrastructure. Then with the increasing demand, new investors started investing in steel or rod production. In 2012 we have almost 400 mills across the country including Dhaka,......

Words: 253 - Pages: 2

Premium Essay

Human Resource

...AC1110568Assignment 01 In the early 1800 clothing was made by hand, families sewed their pants, shirt and dresses using a needle and thread.  But in 1866 Elias Howe changed all that he came up with another way to make clothes.  Elias Howe patented the first practical sewing machine this sewing machine make the industry come back on his original invention made it possible for man production of clothing on a much larger scale that ever been possible with hand stitching. The impact of the sewing machine on the economy is huge. Specifically the sewing machine greatly impacted the textile industry and women. Because women were the ones working in the textile mills they were the ones to use the machine, however some believed that this would infringe on their craft as skilled seamstresses. Others thought this to be a wonder and felt it freed them to pursue other things rather than sit home and sew clothes. In some way the women working with the machines gained a new skill, and were seen as important for the industry. The sewing machine allowed clothing to become a mass produced item which increased the social acceptance of the sewing machine. Besides the commercial sewing machine, the household machine became very popular when it became electric. If you had electric in your home you could have a sewing machine and it was even easier and faster than the hand powered models. The sewing machine also helped other industries grow, for example the need for large quantities of......

Words: 726 - Pages: 3

Free Essay


...Reshoring and its’ effect on America Hideo Mera Webster University Abstract The paper is going to discuss the trend of reshoring and it effect on America. Reshoring is the action of a company to bring jobs back to the United States (US) that were once being done overseas. The trend has been happening a little bit over the years but has gained some steam over the past few years. Some of the reasons for this shift is that the low cost labor advantages that some countries had in the past is eroding due to inflation and other factors. Another factor is costs associated with the logistics of getting parts from overseas location to your market in the US. There are other factors to consider when it comes to reshoring such as innovation, diminished customization, and concerns of quality. All of these factors are reasons that reshoring is occuring and gaining steam. Reshoring Reshoring is when jobs that were once being performed overseas is being brought back to the US. This trend has been happening over last few years but in the last couple of years this trend has gained some steam because the cost saving that were once so prevelant overseas is no longer being realized now. The cheap labor force that existed isn’t as cheap as it once was. The areas of the world that supplied the cheap labor have risen the wages of their workers and the skill set that is required is no longer available. Another factor that there is to consider is the logistics of moving parts from overseas...

Words: 1801 - Pages: 8

Premium Essay


...upgrade competitiveness. Government can influence each of the above four determinants of competitiveness. Clearly government can influence the supply conditions of key production factors, demand conditions in the home market, and competition between firms. Government interventions can occur at local, regional, national or supranational level. Chance events are occurrences that are outside of control of a firm. They are important because they create discontinuities in which some gain competitive positions and some lose. The Porter thesis is that these factors interact with each other to create conditions where innovation and improved competitiveness occurs To what extent can Porter's diamond help explain the choice of Taiwan as a major manufacturing site for Logitech? Porter's diamond considers four...

Words: 411 - Pages: 2

Premium Essay

Tugas Spm

...Transition by Maureen Metcalf Company Profile ‘One of the Most Admired Companies’ in its industry per Fortune magazine, Worthington Industries, founded in 1955, grew from humble beginnings to a multi-billion dollar metal processing company. Today, the firm employs 8,000 people in 67 facilities throughout 11 countries. The company’s success is credited to its customer-centered philosophy, based on the Golden Rule. This philosophy, in addition to an unwavering commitment to the customer, and one of the strongest employee/employer partnerships in American industry serve as the company’s foundation. Challenge and Vision With the continuing growth and diversification of Worthington Industries, inventories naturally grew as well. As with many manufacturing firms, inventory has a significant impact on revenue and cash flow. Maintaining inventories larger than necessary negatively impacts the bottom line. Thus, the firm wanted to gain better insight into their inventories and processes and increase their supply chain informationto a higher level of detail. The company had a vision of further improving the level of customer service, while using less working capital and inventory. In order to achieve this goal, every process that impacted supply chain management and inventory needed to be closely evaluated. Surfacing every issue that could be preventing the firm from providing better customer service—new processes could be identified and implemented. The goal for the company was......

Words: 325 - Pages: 2

Premium Essay

Module 1: Chapter 2: Cost Flow

...Finished Goods Inventory (Dec. 31) $13,900 The sales for Transcontinental Inc. during this year were $1,050,000 and a total of 4,800 units were completed during the year. Compute the following for the year: 1. Cost of materials used? _$197,300____ [Cost of Material Purchased + (Difference between Material Inventory Jan 1 - Material Inventory Dec 31)] 2. Factory overhead? ___$189,600____ [Depreciation – factory machinery + Small tools expense + Machine helpers wages + Miscellaneous factory expenses + Power – factory + Factory insurance expense+ Factory Supervisor Salary] …..All other costs are Administrative overhead and not Factory Overhead 3. Total manufacturing cost? $_555,200__ [Cost of Material Used + Factory Overhead + Direct Labor Cost] 4. Cost of goods manufactured? _$548,600___ [Total manufacturing cost + (Difference between Work-in-process inventory Jan 1 - Work-in-process...

Words: 336 - Pages: 2

Premium Essay

Contract Administrator

...of Just-In-Time Distribution (JITD) in the 1980’s as an alternative to Barilla’s traditional practice of delivering products to their distributors (Hammond, 1). Instead of distributing Barilla’s products based on the orders the distributors placed with the company, Barilla’s own logistics organization would determine the product quantities to distribute that would most effectively meet end-consumers needs. This in turn, would more evenly distribute the workload on Barilla’s manufacturing and logistics systems (Hammond, 1). Vitali hoped his innovative idea would solve the tremendous fluctuation that occurred from week to week in the number of Barilla dry products being ordered by the distributors. The extreme demand variability seriously strained Barilla’s manufacturing and logistics operations. Barilla’s highly automated manufacturing system was not designed to accommodate large fluctuations in demand nor, was it designed to accommodate sudden changes in demand or product. The manufacturing sequences of pasta production made it very difficult to produce particular types of pasta that had been sold out due to unexpectedly high demand. The temperature and humidity in the kiln had to be precisely specified for each size and shape of pasta and had to be tightly controlled to ensure that quality was maintained (Hammond, 3). This procedure limited the ability to rapidly shift production between different pastas. Different sizes of pasta were also made in different......

Words: 3565 - Pages: 15

Premium Essay

Acc 56o Homework

...William P. Worth ACCC 560 EXERCISES & PROBLEMS Chapter One January 13, 2012 EX 1-5Ikerd Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead and (d) period costs. | | 1.   | Property taxes on the factory building. D | 2.   | Production superintendents' salaries. B | 3.   | Memory boards and chips used in assembling computers. A | 4.   | Depreciation on the factory equipment. D | 5.   | Salaries for assembly-line quality control inspectors. B | 6.   | Sales commissions paid to sell personal computers. C | 7.   | Electrical components used in assembling computers. A | 8.   | Wages of workers assembling personal computers. B | 9.   | Soldering materials used on factory assembly lines. A | 10.   | Salaries for the night security guards for the factory building. C | | | List the items (1) thru (10) for each item, indicate the cost category to which the items belong. Rapid Delivery Service reports the following costs ands expenses in June 2011 Indirect materials$5400 Product cost Drivers' salaries $11,000 Product cost Depreciation on delivery equip $11,200 Product cost Advertising$1,600 Period cost Dispatcher's salary $5000 Product cost Delivery equip repair$300 Product cost Property taxes......

Words: 3437 - Pages: 14

Free Essay

Analyzing Managerial Decisions: Rich Manufacturing

...Rich Manufacturing So many firms use cost-plus pricing for supply contracts because it is the easiest method in order to calculate cost and eliminate error. Most of the time when firms are working with numbers, they must find ways that are efficient and not time consuming. What managers do is simply target a rate of return thus saving time and increase efficiency. In fact, it can be more useful in some occasions than others. As stated by Brickley, Smith, and Zimmerman (2009), “cost-plus pricing is more useful when the rate of return that yields the profit-maximizing price on the product is relatively stable over the relevant range of cost variation for a given product and varies little across a related set of products. (p. 212). One of the potential problems I envision with cost-plus pricing is the attention to consumer demand. For cost-plus pricing, this aspect is very much ignored. According to Brickley, Smith and Zimmerman (2009), cost-plus pricing ignores the rise in costs and neglects how the price sensitivity of consumers. Disregarding demand can be detrimental to a company and is a crucial factor. “If demand is slow, then the mark-up percentage may be lower in order to lure in customers. On the other hand, if demand for the product is high and economic conditions are good, then the mark-up percentage may be higher as the company feels they can get the higher price for their product” (Peavler, 2013). Both of these factors demand and pricing, are critical to......

Words: 682 - Pages: 3