Decision-Making Model Analysis

Executive Summary

This report examines the antiquated inventory methods and disposition that Riordan Manufacturing, Inc currently utilizes. In addition, this report will further illustrate the benefits of upgrading the inventory process from a primitive and manual methods to a more efficient and automated system. The purpose of this report is to provide the stakeholders (Warehouse Management, Investors, and CIO) accurate and adequate information necessary for upgrading, designing, and implementing the current in-place inventory process to satisfy the increasing inventory control of materials that are stored, shipped, and received.

Background

Riordan Manufacturing is a global plastics manufacturer founded in 1991. Its products include plastic beverage containers, custom plastic parts, and plastic fan parts. Initially, the company's type of service was on research and development in San Jose, California. Since then, the company changed names to what is presently known as Riordan manufacturing in 1993 and has expanded with remote locations in Albany, Georgia; Pontiac, Michigan; and Hangzhou, China. As a direct result of the expansions and manufacturing of products, the Inventory Management and Control needed to up upgraded from an obsolete and time consuming method to a more innovative and expedient method. The areas of concern are:

Ð'* Raw Materials Receiving

Ð'* Manufacturing with the Inventory

Ð'* Final Product Shipping

In addressing these three components, the company will eliminate frivolous labor spent in receiving the inventory. It will also remove the possibility of inaccurate counts of supplies while increasing customer service by fulfilling orders more quickly.

Raw Materials Receiving

The process involved in the raw material receiving stage is far too inefficient because of the tedious steps involved in manually typing in shipment information along with the additional man power involved in counting, comparing, and updating the inventory control logs.

Manufacturing with the Inventory

The manufacturing with the inventory is another procedure in the inventory process that needs revamping. An excess amount of time is allocated in verifying the physical and perpetual inventory along with the usage of raw material during each manufacture run. This is the phase of the operations that the inventory clerk has to once again update by manually inputting information related to raw materials and sub assembly usage as well as sub assemblies and the final product.

Final Product Shipping

Finally, the final product shipping is the last stage of the inventory process