Proposal for Riordan Manufacturing Ops 571

Proposal for Riordan Manufacturing

OPS/571 August 21, 2012

PRODUCTION STRUCTURE

FAN

Fan Mold for blades and housing

Fan Motor

HDPE Pellets (Polymers)

Other Miscellaneous items

Forecast Order Order Motors and Put in Storage No

Motors in Storage Area?

Ye s

Ye s

Polymers in Storage area? Custom

No

Order Polymers and Put in Storage

Standard or Custom? Melt polymers and inject into molds

Research & Development

Yes

Is Project feasible? No

Assemble Fans

Stock Products

Reject Project

Customer Orders Product Make Shipping Arrangements Customer Receives Order

Ship

Customer Pickup or Ship

Pickup

Customer Receives Order

Future Requirements for Fans

Forecasted Demand Using Simple Moving Average Cooling Fan Quarter 1 Quarter 2 Quarter 3 Quarter 4 2006 Forecast Total 320 979 967 975 3,241 Desk Fan 103 288 291 290 972 Personal Fan 27 75 77 80 259 Window Fan 25 73 25 77 200

Master Schedule

Schedule by Month Jan Cooling Fans Desk Fans Personal Fans Window Fans Feb Mar 320 103 27 25 Apr 321 92 24 23 May 330 100 26 25 June 328 97 26 25 July 322 97 26 24 Aug 320 98 26 25 Sept 325 96 25 25 Oct 325 97 26 25 Nov 326 95 26 25 Dec 323 98 28 26

Inventory Records File

2005 Inventory Record File

On Order (40% of Safety Last years Stock Sales)

Inventory On Hand

Lead Time

Cooling Fans Desk Fans Personal Fan Window Fan

43,200 28,800 7,200 7,200

5,446 1,653 444 427

Material Requirement Planning Schedule

Material Requirements Planning Schedule Jan Cooling Fans Lead Time On Hand Safety Stock Gross Requirement Scheduled Receipts Projected Available Balance 320 321 330 328 322 320 325 325 326 323 Feb Mar Apr May June July Aug Sept Oct Nov Dec

Order Qty - Make to Stock

Net Requirements

Planned Order Receipts Planned Order Releases 3242

Desk Fans Lead Time On Hand Safety Stock Order Qty - Make to Stock Gross Requirement Scheduled Receipts Projected Available Balance Net Requirements...