Supply Chain Design: Riordan Manufacturing
OPS/571
March 16, 2015
Supply Chain Design: Riordan Manufacturing
Riordan Manufacturing is a leading global manufacturer of plastics, operating in the United States and China. Dr. Riordan founded parent company Riordan Industries in 1991 when he discovered the commercial potential of his plastic patents for “processing polymers into high tensile strength plastic substrates” (University of Phoenix, 2013). Through licensing patents and research and development, the company established manufacturing plants in Michigan and Georgia to produce parts for fans and plastic beverage containers. In 2000, the company expanded to a plant in China, which assumed fan manufacturing, freeing the Michigan facility to manufacture custom plastic parts.
The company focuses on research and development, which has transformed it into an industry leader. Through anticipating trends and innovation, Riordan provides effective solutions for customers’ needs, including auto manufacturers, aircraft manufacturers, the Department of Defense, beverage companies, and appliance producers (University of Phoenix, 2013).
Manufacturing Strategy
Riordan uses a combination manufacturing strategy, varying by plant and product. The Georgia bottle facility uses a combination strategy, as customer orders are determined annually, but quantity on randomly received customer release orders can be difficult to predict. They can maintain a somewhat consistent production, but need flexibility should a large order occur. The plant maintains a small safety stock of inventory and chase manufacturing to meet the unexpected demand, balancing low inventory costs and sufficient inventory to meet the varying demand. The Michigan custom order plant manufactures based on customer demand, while maintaining a level strategy in terms of raw material in inventory. The fan facility in China produces products made-to-stock, or the level strategy, based on...