Riordan plant in Hangzhou, China operates its manufacturing unit to prepare the electric fan to provide the worldwide supply based on the production forecast sales extrapolated using the theory of moving averages for last three years. The present paper discusses the impact of lean production and strategic capacity planning along with supply chain concepts to design the new manufacturing process of Riordan electric fans to meet the objective of maximum profitability for the company.
Strategic Capacity Planning for Riordan Electric Fans
There are three centers of Riordan in Albany, Pontiac and Hangzhou which controls the operational activities of manufacturing the fans and order fulfillment of the product to the customer. The manufacturing unit located in China and Michigan produces custom parts which is required for different components of different items. But consolidation of these two production plant will reduce the expenditure on equipment and manufacturing process can be optimized at one location to meet the demands based on production forecast. The combined system will also improve the delivery schedule of order through better co-ordination between inventory management, production, shipping and deliv