This course applies planning and controlling concepts to increase the value of the supply chain. We learned to evaluate and improve processes. Other topics include process selection, process design, and theory of constraints, project implementation, capacity planning, lean production, facility location, and business forecasting.
Strategic Capacity for the New Process Design
The objective of strategic capacity planning is to reach an optimal level where production capabilities meet demand. In order for Riordan’s company to reach such level, they must be well informed on the key issues and topics that could influence their decisions. Riordan forecasting must be able to show the pros and cons for the electric fans, equipment, and employee skills. It should let managers of Riordan know that if the product demand suddenly declines, then they have not loss as much revenue and the excess capacity can still be used. With the now process, they will also improve the way they monitor the outputs of the new product. This must be managed to minimize costs and ensure that the right supplies are in the right place at the right time. Excess inventory is costly and increases the risk that products will become obsolete.
Lean production in the supply chain is an important process that can greatly enhance both the efficiency of the organization that may also improve customer service. Above all, it may decrease cost causing an increase in profit. While Riordan could deal with minor changes improving their process, the real answer is assessing the entire distribution and manufacturing process. In Riordan’s case, the lean supply theory is not upheld by Riordan’s actions because they do not meet their schedules. Lean production in the supply chain is also an essential element to gaining a competitive advantage in a competitive market.
Implementation of the supply chain process is also very important. Without the proper implementation, the supply chain will not function to...