Inventory And Manufacturing Upgarde Proposal - Riordan Manufacturing
Inventory And Manufacturing Upgarde Proposal - Riordan Manufacturing
Executive Summary
The objective for this service request is to analyze the current processes in inventory and define business requirements for system upgrades and improvements. Riordan Manufacturing has requested assistance to provide specific recommendations for improving their inventory system. Business requirements were established using a set of metrics to evaluate three options for improving inventory practices at Riordan. The two options evaluated are Materials Requirements Planning (MRP), and Vender Managed Inventory (VMI) of an Enterprise Resource Planning system (ERP). The metrics allowed the two systems to be scored based on the priority of business requirements, which provided the basis for recommendations to Riordan. In addition, to evaluate the two systems, the evaluation team utilized a Flow chart to develop implementation reasoning for project management, assessment, hardware/software installation, user training, and software support. Riordan Manufacturing advised the consulting team of their constraints of a one million dollar budget with a one year implementation deadline. The team also completed an analysis of the return on investment (ROI) for the inclusion of an MRP solution. This analysis proved that the MRP module of an ERP solution would greatly reduce inventory costs for Riordan. Taking into account the business requirements and parameters set by Riordan, the consulting team can make a recommendation.
After careful analysis using measurable metrics the consulting team recommends Riordan implement a MRP module along with the ERP system to improve their inventory processes of raw materials. The metrics table scored the VMI system slightly better than the MRP, but when selecting a system one must consider all factors. The metrics revealed the MRP hardware would cost more than the VMI hardware, but the MRP system scored better in the integration and software requirement column. Riordan has two plants in the United States and one in...
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