Supply Chain Design

Supply Chain Design

Intro

Riordan's Manufacturing Strategy

                Riordan's Manufacturing strategy can be uniquely defined as a stable process crafted to meet the needs of the organization while meeting the demands of its customers (University of Phoenix: Riordan manufacturing: Home, 2013). This particular manufacturing strategy aligns itself with the core mission and values of the company by "maintaining rigorous quality controls, innovative solutions, a responsive business attitude and reasonable pricing" (UoP, Riordan manufacturing: Home: Our customer relationships, 2013, para. 2). According to Jacobs and Chase (2011) “The chase strategy matches the amount of employees an employer has based on the amount that is demanded to be produced, a stable workforce matches the demand of production by varying the amount of hours employees work, and a level strategy maintains a stable workforce with constant production” (p.534).

Figure 1. Process for electric fan supply chain.

Quantitative Performance Measures

Riordan Manufacturing deals with quantitative performance measures. These are measures that are described numerically. Quantitative performance measures are generally categorized by two different objectives (Beamon,1998). These two objectives include those based solely on cost and profit and those based somewhat on customer responsiveness (Beamon, 1998).

The measures that are based on cost include cost minimization, sales maximization, profit maximization, inventory investment minimization, and return on investment maximization (Beamon, 1998). Cost minimization is the most commonly used objective, focusing on total cost for the supply chain. Sales maximization deals with the maximum amount of dollars or units that are sold. Profit maximization deals with the greatest profit less the costs. Inventory investment minimization deals with the smallest amount...