Ops/571 Week 6

New Process Design
The operational focus at Riordan’s China plant is on quantity concerning the production of the fans. The necessary amount of inventory is maintained through the production forecast. Nonetheless, the amount of inventory is not adequately measured because only 93% of deliveries are in a timely manner. Therefore, Riordan should seek substitute manufacturers in addition to its current unit to have an adequate amount of inventory to avoid delays in production. This would help the company schedule and deliver more efficiently. Riordan should also keep more inventories in its units, however; this will increase the company’s inventory cost. Riordan could minimize the cost by reducing the amount of plastic polymer in its inventory because it is easily obtainable. Additionally, Riordan will need to update its MRP system so it will have the capacity to assist in numerous stages within the production cycle. A newer system would ensure that resources are optimally used, which in turn will increase its efficiency, especially concerning production time.

Material Requirements Planning System
The current supply chain that Riordan has in Hangzhou, China has only a 93% delivery time to its customers. Because Riordan takes pride in, and the company policy is to provide total customer satisfaction in terms of meeting the committed ship dates, the company still has room to improve its delivery time. The local Chinese Company that provides the electric motors is the cause that the delivery time is at this percentage because it sometimes cannot keep adequate stock of the electric motors. As a global manufacturing company Riordan has the ability and access to look into other companies that can provide the supply that Riordan needs in a more cost-efficient way. Riordan can look into a VMI supply chain system that will help lower the cost of inventory, and give a higher delivery time percentage than the local Chinese Company that Riordan currently uses. Acquiring this...