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 plant in China …show more content…
Diagram 2. Process Flow Diagram for the Electric Fan Supply Chain: United States R & D Facility to Chinese Plant
Two metrics utilized to evaluate the performance of the supply chain are the cash conversion cycle (CCC) and direct material received on time. The cash conversion cycle attempts to measure the amount of time each net input dollar is tied up in the production and sales process before it is converted to cash through customer sales (Cash Conversion Cycle (CCC) Definition | Investopedia, 2014). The direct materials received on time for the delivery of the plants plastic polymers was selected because of its impact to Riordan’s product delivery to customers.
Diagram 1 indicates Riordan’s efficient supply chain operation which identifies logistical steps and potential bottlenecks in the process. Riordan also uses Post Project Review to identify positive and negative trends in their processes. Riordan uses data from manufacturing operations to identify system inefficiencies to implement change and increase effectiveness.
Supplier Relationship and the Effects on the Supply Chain
The two major inputs needed to manufacture the Riordan electric fan are electric fan motors and high-density polyethylene plastic pellets (HDPE). The electric motors are completely assembled units purchased by buyers in the China Plant’s purchasing