Supply Chain Design

Supply Chain Design

  • Submitted By: skennyl
  • Date Submitted: 08/12/2015 9:09 PM
  • Category: Business
  • Words: 1942
  • Page: 8

Riordan's Manufacturing Strategy

In today’s business and manufacturing world, firms must deal with a multitude of issues that arise from the needs of their customers, their exceptions, cost operations, and the rising cost of meeting the requirements of their products. Supply chain management is then used in order to anticipate the proper inventory needed, ensuring a continuous flow of supply chain to the consumer in an efficient, cost effective manner; all the while remaining competitive in the market. Supply chain management ensures that firms remain nimble in their production and inventory levels, meeting the needs of their customers. Many firms use manufacturing methods that will help their production strategy, the two most common types of strategy used by many firms are: level strategy and or chase strategy.
Riordan’s Electric Supply Chain
Riordan’s operations and supply chain process use level strategy in their production of electrical fans. Level strategy, is the perfect fit for Riordan’s operation because level strategy allows for the flow of continual production as well as the rate of employees and will allow the manufacture to stock higher levels then Riordan’s currently needs. Using level strategy allows for perpetual level of output, all the while still filling the need and demand of the customers (Jones, 2001). Figure 1 depicts the flow diagram for the electric fan supply chain.
Figure 1

Two Metrics to Evaluate Performance
The electric supply chain is a make-to-stock organization. This indicates that the company focuses production on demand. Therefore there the two types of performance measurements that would best fit this company is a productivity measure and a quality measure. The actual production should be compared to the planned production. In addition, the quality of the finished product should be measured as well as customer satisfaction. “Similar to the value of financial measures to accountants, process performance metrics...

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