McDonald's is a very well-known brand all over the world around the world. It has its restaurants setup in around a hundred and twenty countries and serves approximately 50 mil people every day.
McDonald's have been facing difficulties in managing its stock. This case talks about about how McDonald's used to control its inventory earlier and how its setup of new inventory management devices benefitted the company.
To manage inventory efficiently, a balance is needed among meeting customers' needs reducing wastage. The latter factor is possible by accurately forecasting require so that food doesn't have to be thrown away regularly & likewise capably controlling the stock in the raw materials. Nevertheless , this can be difficult as customer preferences modify very often. This would create McDonald's the needs focus on merchandise proliferation & so reducing the waste materials becomes more challenging.
Previously, share was used care by the restaurant managers by using prior information & knowledge. This kind of caused the mangers to shell out a considerable amount of time forecasting the need. Also, this kind of being to simple a method didn't take into account and other factors(seasonal change, holidays).
In the year 2004, McDonalds implemented a fresh stock managing team which was called since the Restaurant Supply Preparing Department. The team, after communicating with the local restaurant managers, including many factors which many affect the share into foretelling of system to predict the expected require of the menu items.
To ensure that only refreshing stock is actually used, mangers at McDonald's used FIFO method to handle the stock. The different types of inventory that need to be handled were
a. Raw materials. Ex girlfriend or boyfriend: vegetables, meats, packaging
m. Work in Progress. goods which can be in the process of becoming finished products
c. Completed products. These are generally goods which are ready for sale
Using the share management system, McDonald's was able to guarantee enough inventory was available when needed at the same time...