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Supply Chain Design Riordan part 1 of 2

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Running head: SUPPLY CHAIN DESIGN PAPER, RIORDAN INDUSTRIES 1
OPS/571
Gary Olsen
9/15/2014

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SUPPLY CHAIN DESIGN PAPER RIORDAN INDUSTRIES 2
Supply Chain Design, Riordan Industries
Supply chains are adapting and upgrading to new technologies around the world. Supply
chain management and strategies will be discussed to new hires in Hangzhou, China. Riordan
Manufacturing can use the supply chain management theory to help each function in the supply
chain connect and become more efficient. Riordan Manufacturing plans to use a competitive
strategy and “go green.” Riordan’s customer fulfillment mission is to “strive to be a solution
provider for our customers and not be a part of our customers challenges” (University of
Phoenix, 2013, p. 1). Riordan Manufacturing want new hires to use process thinking to achieve
improvement in business practices and enhance the way tasks are done.
Process Flow Diagram
Electric fan manufacturing is one of the key sectors of Riordan Manufacturing with its
plant located in China. In essence, the company outsources non-core operations, and only
conducts the fan assembly process within. The motors and plastic polymers are completely
assembled and purchased from local Chinese company, whereas the logistics are outsourced to a
local shipping company or FedEx. The operations done inside the company only include the
creation of individual plastic parts of the fan, the assembly of the parts, packing of the fans, and
temporary storage until the fans are shipped to the consumers. The summary of the supply chain
process may be seen below.

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SUPPLY CHAIN DESIGN PAPER RIORDAN INDUSTRIES 3
Strategy
The internal policy of the organization involves the use of make-to-stock operation, in
which demands are forecasted from the average of previous sales. The company manages to meet
the demands by means of buffer stock or spare inventories, which would be used to meet the
unexpected demands from the consumers. Based on these characteristics, it may be inferred that
the manufacturing strategy adopted by Riordan Manufacturing in the production of electric fans
is level manufacturing strategy. According to Jacobs & Chase (2011), level manufacturing
strategy involves the maintenance of a stable workforce in a manner, which aims at constant
output rate. The strengths of this strategy involve the ease of handling because the manufacturing
climate is relatively stable and the benefits enjoyed by the employees related to the stable work
hours (Jacobs & Chase, 2011). However, there are several drawbacks related to this strategy,
including fluctuation in inventory levels, lost sales, and backlogs in the ordering system (Jacobs
& Chase, 2011). Typically, higher inventory levels are required to meet the uncovered demands

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