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Ops 571 Week 4 Essay

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Supply Chain Design
Riordan Manufacturing is a global plastics manufacturer and is a subsidiary of Riordan Industries. Riordan Manufacturing has three main production facilities located in Georgia, Michigan and Hangzhou, China. This paper will focus on the manufacturing business and supply chain activities of the electric fan production in Hangzhou China with information on manufacturing strategy, production performance, supplier relationships, forecasting and inventory.
Manufacturing Strategy Riordan Manufacturing China uses a level manufacturing strategy to produce electric fans. The advantages of using a level manufacturing strategy as defined by Jacobs and Chase (2011) are, “Maintain a stable workforce working at a constant …show more content…

Year 2007 is estimated data based on an expected 8% product growth:
Riordan Fan Sales 2004 2005 2006 2007
Jan 6894 7583.4 9100.08 9737.086
Feb 6211 6832.1 8198.52 8772.416
Mar 7235 7958.5 9550.2 10218.71
Apr 7679 8446.9 10136.28 10845.82
May 8231 9054.1 10864.92 11625.46
Jun 9114 10025.4 12030.48 12872.61
Jul 10112 11123.2 13347.84 14282.19
Aug 11017 12118.7 14542.44 15560.41
Sep 9743 10717.3 12860.76 13761.01
Oct 7542 8296.2 9955.44 10652.32
Nov 6865 7551.5 9061.8 9696.126
Dec 5932 6525.2 7830.24 8378.357

Aggregate Production Plan Riordan’s goals are to reduce costs by 10% and cycle time by 15%. This is increasingly difficult because Riordan has multiple products with varying demands, multiple prices, and capacity requirements. Riordan will use its forecasted sales figures to build a materials and production schedule for 2007 and beyond if needed. This plan must take into consideration existing inventory and resources as well as planned changes. For this plan to be effective, it must be followed closely and clear checkpoints must be defined to provide the flexibility needed to hit cost reduction and cycle time improvement goals.
Master Production Schedule The existing production schedule will be maximized with the use of a Materials Requirement Planning System. “To determine an acceptable feasible schedule to be released to the shop, trial master production schedules are run through the MRP program. The resulting planned

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