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Process Design for Riordan Manufacturing

MRP for Manufacturing The present process at Riordan Manufacturing is centered on the China plant, which applies material requirement planning to adhere to the material requirements, which then go through a collection process at receiving units in order to make its way to the molding unit. The assembly unit then receives the products, which are forwarded to the appropriate packing unit for appropriate handling. Lastly, the shipping unit handles the electric fans’ distribution. Riordan Manufacturing is concerned about scrap materials from the respective units. As such, there should be a reduction in the level of wasteful products from every unit; this, in turn, would lower the price of producing each fan. One initiative already commenced is the Hangzhou plant’s utilization of extra parts within its products that are customized. There are, however, additional concerns pertaining to periodic orders in regard to the supply of fans. As such, it is difficult to properly assess material requirements. In order to make this process more effective and precise, the MRP process needs to factor in variability in regard to overall supply and demand within the electric fans’ production.
A New Process Design Riordan Manufacturing's China plant’s operations focus is on quantity when it comes to the production of the fans. The necessary amount of inventory is maintained according to a production forecast. Nonetheless, the amount of inventory is inadequately measured since only 93% of deliveries are in a timely manner. As such, Riordan should seek substitute manufacturers in addition to its current unit in order to have an adequate amount of inventory so production will not be delayed; this would help the company schedule and deliver more efficiently. Riordan should additionally keep more inventories in its units; however, this will

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