Riordan Manufacturing Case Summary

SMW’s current accounting information system is a cutting edge relational database system through Microsoft Access with internal controls set to adequately prevent and detect errors and fraud. This relational database system tracks sales orders, shipments, accounts receivable, cash receipts, purchases, accounts payable, cash disbursements, inventory levels and other relevant accounting information. The system’s output is compliant with Generally Accepted Accounting Principles (GAAP). The database processes currently in use at SMW are described below.

2. Any of their sales transactions to vendors for their products, especially sales requiring timely delivery.

Price - is the amount of money expected, required, or given in payment for something (Business Dictionary, 2014).

Riordan Manufacturing 's current process is not very efficient. It calls for multiple suppliers to ship parts to Riordan 's raw material storage area at regular intervals. These intervals have been set up in advance using production history as a guideline. This process causes a huge inventory spike during slow production times thus requiring a large amount of storage space and upfront costs. There is not a standardized method for the individual assembly areas to communicate parts shortages back to the raw material storage area. Also, as indicated during our analysis, the network infrastructure and current systems at the plant are very outdated causing system slowdowns and reducing plant efficiency.

This will need to be a system that is available at each of the individual stores. Sales clerks will need to have the ability to access this information so that when a

Riordan Manufacturing has a large problem when it comes to inventory and customer orders. Because Riordan has offices both in the United States and in China, it faces a number of obstacles both in the logistics of inventory control and the need for accurate customer order management.

Generally, product expenses include all those costs associated with the acquisition, manufacture or production of a product. Drury (2007)

When we talk about generating revenue, an a la carte pricing is where the customer chooses a product package and

OSCA (On Shelve Customer Availability) this program tracks sales per department, worst sales products, most sales products, daily average sales, and many others.

Sarah Newell’s company Newell Manufacturing & Distribution is currently valued to an amount of $132,508,608 through the use of discounted cash flow models. It is suggested that she sells the company as a whole. The reasoning for selling of the design division is based off of the positive correlation between the equity valuation of a company in the industry and its ability to generate sales. Consequently, there is no direct relationship between the amount of sales and the number of households a company has in its mailing list. Esteban Armijo’s need for a design company with over 3 million households in its mailing list will provide the Sarah an opportunity to sell the division at a price which reflects revenues and an additional premium that

The customer has access to the price rates and various schemes and offers, this is the display stage, once the products are chosen the billing takes place at the cashier, leading to the packaging stage where the customer is handed over the product which was formerly stocked at the inventory.

This is where you are able to determine the price with your suppliers. This can happen if there are a large amount of suppliers and you are buying in bulk. This may force suppliers into a price war.

In spring 2010, New United Motor Manufacturing Inc., a successful joint venture between Toyota Motor Co. and General Motors Co, shut down its plant in Fremont, California. Over two decades NUMMI was a model manufacturing plant with high quality and productivity, exceptional worker’s satisfaction and attendance. What did NUMMI do to change the former GM’s dysfunctional disaster into best plant?

d. a price that includes both the cost of the product plus transportation to the buyer

This term paper exercise is designed to have you study the specific sales practices of a company