OPS 571 week 6 (2)The demands of the fans are based on functionality

OPS 571 week 6 (2)The demands of the fans are based on functionality

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The demands of the fans are based on functionality. The framework of the fan manufacturing process does not change but the technology might improve. Currently, “the future demand for fans is forecasted based on taking the average of sale for the last three years and extrapolating it into the next year” (UOP, 2005). The company wants to have more predictable demands with stable supplies. Forecasting the demand for the individual orders is determined by the customers’ yearly requirements. Riordan Manufacturing should revise its supply chain. The framework for demand should stay the same as functional. According to Chase, Jacobs, and Aquilano (2006), functional products “have a stable, predictable demand and long life cycles. But their stability invites competition, which often leads to low profit margins” (p. 411). Riordan’s fans are catered to their customers can customized their order and have it delivered. This method will increase profit margins. With the inventory in the stockroom, each year the sales goals increase tradeshows and existing customers. This will help move the inventory and increase sales. The company should ensure the inventory is the right amount and it is not costing the company money. Riordan Manufacturing’s electric fans production has the potential to become a success, if the company re-evaluate and changes its current production plan. Establishing a new product plan for that focuses on strategic capacity planning, lean production, and supply chain will increase Riordan Manufacturing productivity because these functions are essential manufacturing and assembly companies. Implementing these strategies will help the company eliminate competition, increase profit and sales, and revenue. Moreover, the company will be
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OPS 571 week 6 (2)The demands of the fans are based on functionality

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