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Supply Chain Design

In: Business and Management

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Team B Week Four: Supply Chain Design

OPS/571
March 4, 2014

Team B Week Four: Supply Chain Design Riordian Manufacturing is a manufacturing company specializing in the production of plastic products and fans. The fan manufacturing plant is located in Hanzhou, China. The manufacturing of the fans is a make-to-stock operation. Future demand for the fans is forecasted based on the average sales of the last three years. Inputs for the production of the fans are acquired locally. The China plant uses the services of a local Chinese shipping company for delivery of goods. The plant uses FedEx or another Chinese shipping company for international shipments. Process flows, performance evaluation metrics, supply chains, lean production principles, and forecasting are all components in maintaining the success of Riordian Manufacturing.
Supplier Relationships and the Effects on the Supply Chain Riordian Manufacturing’s plant in Hangzhou, China requires two major inputs for the electric fan production process. The first is high-density polyethylene plastic pellets (HDPE). Not much is mentioned on Riordian’s intranet other than the HDPE is purchased locally. The second major input is the electric motors that power the fans. The motors are produced locally by the Yin Motor Company (YMC). The Yin Motor Company became Rioridan’s supplier due to previous business or family relationship between YMC and Riordian’s partners in China. Rioridan receives the electric motors from YMC already assembled. Rioridan only stocks a small amount of the more popular electric fans to meet warranty repairs. Rioridian depends on YMC’s stock of electric motors. Rioridan periodically communicates to YMC the forecasted list of motors it expects it will need for the year. This is intended to help YMC plan which motors to produce and how many to carry in stock. The stock…...

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