Supply Chain Design Paper
For this assignment Team B will study the design of Riordan Manufacturing to help give a better understanding of a supply chain. Team B will create a process flow diagram, evaluate the organization's performance, and describe the supplier relationship's effect on Riordan Manufacturing. Team B will describe how lean production principles may maximize the efficiency and effectiveness of Riordan Manufacturing. Team B must select a business forecasting technique for the electric fans and describe Riordan Manufacturing's forecasting process. Team B will create a sales forecast to use to develop an Aggregate Production Plan, Master Schedule, and Materials Requirement Plans. Additionally, Team B will choose an appropriate inventory system by determining the inventory requirements of the electric fans component parts and finished goods.
Riordan's Manufacturing Strategy
Riordan Manufacturing uses a level strategy to produce the electric fans. According to Jacobs and Chase (2011) “The chase strategy matches the amount of employees an employer has based on the amount that is demanded to be produced, a stable workforce matches the demand of production by varying the amount of hours employees work, and a level strategy maintains a stable workforce with constant production” (p.534). Riordan Manufacturing produces its electric fans at a constant rate without having to vary the amount of hours each employee works. According to Jacobs and Chase (2011) “The level strategy absorbs shortages and surpluses by fluctuating inventory levels, order backlogs, and lost sales” (p. 534). Employees benefit from stable work hours. However, the company may suffer large inventory costs or products may become obsolete due to the constant production of the electric fans components and parts (Jacobs and Chase, 2011).
Riordan Manufacturing's Process Flow
Process Flow and Metrics
According to Jacobs 13ed (2011), a process flow diagram is defined as a sequence of...