According to Jacobs & Chase (2011), the core concept of supply chain management is to implement a comprehensive system approach to managing the flow of information, materials, and services from suppliers of raw materials to warehouses and ultimately to the end customer. Establishing and maintaining a solid supplier relationship can enhance partnerships, trust, and value.
Riordan Manufacturing has implemented a process to ensure consistency of operations and quality control at all its plants. They have developed a common set of procedures for managing the receipt of raw materials, tracking products during manufacturing, and accounting for finished goods inventories. Riordan Manufacturing has four locations: the Research and Development (R&D) center in San Jose, CA, a bottle manufacturing plant in Albany, Georgia, a custom plastic piece manufacturing plant in Pontiac, Michigan, and a fan manufacturing plant in Hangzh
...ou, China. The R&D center is also Riordan's Corporate Headquarters, but it has a minimal amount of raw materials and components. It only has five personnel who focus on creating new products. The R center has a small supply chain because it maintains a limited amount of raw materials and components.
However, the Albany, Georgian plant has predetermined quotas for products and follows the continuous replenishment model where the manufacturing company constantly replenishes the inventory by working closely with suppliers and/or intermediaries (San Diego, n.d.). The plant is interested in transitioning to the Vendor Managed Inventory (VMI) supply chain. Additionally, the plant ships 96% of its products on time.
The Pontiac, Michigan plant utilizes the make to order supply chain approach as it specializes in manufacturing custom plastic parts with new dies according to customer specifications. This supply chain model is known
as make to order.
On the other hand, the Hangzhou, China plant is the largest operation within the organization. . .
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