Riordan Week 4 Chain Supply OPS 571 Essay

1644 Words7 Pages
Riordan Manufacturing: Supply Chain Design Paper Riordan Manufacturing, a leading global manufacturer of plastic containers, parts, and fan parts, is wholly owned by Riordan Industries, Inc. Riordan’s fan manufacturing plant was purchased in 1992 when it was located in Michigan. In 2000, the company moved its fan manufacturing operation to China where it now resides. Riordan schedules manufacturing of fan parts based on forecasted production needs using an averaged three year sales history. Riordan’s make-to-stock system benefits customers who need products quickly with orders filled from inventory when received. Riordan employs a robust shipping department including a variety of reliable shipping solutions from the…show more content…
Second, an article that accompanying the fax indicated 400 laborers at the Yin Motor Company are on strike. This strike could possibly affect the financial stability of the Yin Motor Company. Third, “while this company attempts to maintain adequate quantities of electric motors in stock to meet all its order requirements, its on-time deliveries over the past year have averaged only 93%” (Riordan Mgf. Operations - Supply Chain (Hangzhou, China), 2014).
To address these concerns, Riordan should negotiate with its Chinese partners to obtain rights to directly work with suppliers. It can do this by insuring its Chinese partners they will maintain the relationship between the Chinese plant and the Yin Motor Company. Riordan then can work directly with the Yin Motor Company to improve their labor situation and increase their on-time deliveries. This strategy will increase Riordan’s supply chain strength.
Lean Production Principles
To maximize the efficiency and effectiveness at Riordan, a make-to-stock process is used. Filling customer orders as received from finished goods inventory and maintaining a small inventory on hand reduces gaps in seasonal fluctuations at Riordan. Forging a strong alliance with Chinese supply chain partners will increase quality and volume of the

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