Riordan Manufacturer’s Operations and Logistics Essay Example
Riordan Manufacturer’s Operations and Logistics Essay Example

Riordan Manufacturer’s Operations and Logistics Essay Example

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  • Pages: 4 (919 words)
  • Published: November 9, 2017
  • Type: Essay
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At its various locations, Riordan Manufacturer produces plastic beverage containers in Albany, Georgia, custom plastic parts in Pontiac, Michigan, and plastic fan parts in Hangzhou, China. The company's Research and Development activities are conducted at its corporate headquarters in San Jose.

The following text aims to provide information on the operations and inventory management of Riordan's facilities. Firstly, at the Albany, Georgia plant, which produces plastic bottles, customers are contracted for yearly quantities of standard and custom unique bottles. However, customers can also place release orders for smaller quantities throughout the year, with these orders being received randomly. To account for the variability in customer sales, the Albany plant maintains a small safety stock of popular standard containers in case customers request them. Due to limited storage space, this safety stock is small. Additio

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nally, the plant also keeps a safety stock of raw materials used in bottle production to ensure there are no shortages that would delay order shipments. The decision regarding the amount of safety stock to carry is made by management, taking into consideration associated inventory costs and avoiding contract penalties for missed delivery dates due to lack of materials.

In addition, the company's policy is to ensure complete customer satisfaction by meeting the agreed ship dates. Riordan's data shows that over the past three years, 96% of deliveries have been made on time, with the remaining 4% being delayed due to uncontrollable severe weather conditions. Furthermore, Riordan relies on Huffman Trucking Company for all its domestic product shipments. While the Albany facility has a commendable record of delivering shipments promptly to customers in close proximity to the plant, it has encountered difficulties in meetin

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required due dates for customers located in the North and North-Eastern regions of the U.S. during inclement weather.

The Albany plant keeps track of its shipping performance through metrics, which include the number of late deliveries, the amount of time shipments were delayed, and the reasons for the delays. In comparison, the Pontiac Michigan plant focuses on handling custom plastic fabrications for customers. Each custom project requires specific dies for the injection molding process. This plant is capable of creating new dies according to customer specifications. Although custom parts are mainly produced in small production runs, the plant also maintains a diverse range of raw materials to quickly fulfill customer requests for custom parts.

Now we move on to exploring the operations of Riordan's facility in Hangzhou, China. As mentioned earlier, this plant is responsible for supplying fan parts, including electric motors and local plastic polymers. These polymers are essential for buyers as they are used to create plastic parts such as fan blades and fan housings. These parts are then assembled to create the final model of an electric fan. The finished products are individually packaged with instructions and stocked for sale. Forecasting methods at this facility are based on the average sales of the past three years, which are then extrapolated into the next year. The hope is that by using this method, historical patterns will repeat themselves within certain limits. Customers can either pick up their fan orders at the China plant or have them shipped. The plant uses a Chinese shipping company, which offers cheaper services compared to FedEx. However, for international orders, both shippers are used as they provide similar services and

comparable rates. It is also helpful for customers to indicate their yearly requirements, as it helps the plant estimate the necessary resources to fulfill anticipated orders. Lastly, we have the Research and Development Department located at the corporate headquarters.

The R;D Department consists of five product development personnel who research and develop the next generation of heart valves, medical stents, and complimentary medical devices. This plant faces minimal supply chain issues due to requiring only a small amount of raw materials and components for proof-of-concept models of potential new products. To conclude Riordan's operations, it is necessary to consider the inventory management and controls implemented at each plant.

Inventory Management and Control

To maintain consistency and quality control across all Riordan plants, a set of procedures has been developed for managing the receipt of raw materials, tracking products during manufacturing, and accounting for finished goods. These procedures involve:

- Raw Materials Receiving:
- The truck delivering raw materials arrives at the receiving area.
- Receiving area supervisors compare the shipping document with scheduled incoming orders.
- After validating the received material, the receiving area team unloads the truck and moves the raw material to the designated area in the factory.
- At the end of each day, the receiving area supervisor provides the receiving clerk with a log of all received raw materials and associated shipping documents.The inventory clerk enters information about raw material receipts into the inventory system, including type, vendor, and quantity. Manufacturing staff fills out an inventory usage form when removing raw materials and sub-assemblies from inventory. The clerk then enters this usage information into the system. The manufacturing

team completes an inventory form for sub-assemblies and final products, which the clerk updates in inventory. Orders are taken from customers via phone, fax, or sales staff. Sales orders are entered into the customer shipping and billing system. The shipping department loads trucks with specified products based on daily shipping documents. The inventory clerk updates the inventory system according to the shipping documents.

Reference

  1. Riordan manufactures.Operations. Retrieved May 26, 2008.BSA~502 Business System II.
    http://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Riordan/Ops/RioOps002.htm
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