Business Inventory System Assignment Help Inventory System of McDonalds McDonald Corporation is a leading US fast food company in the world. Company operates its business across the world and dealing in variety of fast food products such as burgers, pizzas, different types of cold and hot drinks etc. In order to create effective management of inventory, company uses Just in Time inventory management system. It helps the company to maintain effective customer base in the market and also helpful in make effective inventory at stores in order to satisfy the needs and demands of customers in the market.
The inventory system of McDonald Corporation helps the company and customers to provide fresh and healthy food. The JIT system also provides the opportunities for the company to place order of raw material at right time to the supplier and receive the raw material with high quality and low cost in right time. It also supports the company to reduce in wastage and increase the product quality and the efficiency of production. The JIT system of inventory in McDonalds helps the company to pre-cook a batch of burgers and keep them for a long time. When the order is placed by the customer, company serves the burgers within the limited time of period. Four year inventory data of McDonalds is given in appendix. Also if you looking for forecasting case study assignment help then you mail us your queries.
Advantages and disadvantages of Inventory System The advantages and disadvantages of JIT inventory system for McDonalds are as follow:
Advantages: For McDonalds, JIT provides the support in satisfying the needs and demands of customers in low time. Through the JIT inventory system, company is also able to place order in right time to the suppliers and receive raw material at low cost with good quality. JIT system is also helpful for the company to reduce carrying cost to a minimum. Company ordered raw material, when it is needed for daily uses. It also helps the company to reduce its operational costs in significant manner. With the help of JIT inventory management system, company also trains the employees to work at different stages of assembly line in order to meet demands of customers. It also helps the company to improve the quality of products and services at different outlets. It is because trained employees more focuses on the flexible work shifts that reduces the defect rates, which increases the customer satisfaction and reduce the costs of the organization in significant manner. The advantages are also related to the better supply chain management. Through the effective implementation of JIT inventory management system, company also improves its supply chain management by ordering raw material at right time. It also helps the company to achieve competitive advantages over its competitors and to improve the inventory management system in the market.
Disadvantages: Apart from the advantages, this system also has some disadvantages that impact on the organization as well as effective management of inventory in effective way. The disadvantages of JIT system is related to the co-ordination between supplier and the company. The JIT inventory management system requires more coordination between company and suppliers in the distribution channel. JIT uses computer and software that directly link with the suppliers, so they can monitor the inventory levels at stores in order to create rapid response. It creates problems in order to make effective coordination between suppliers and the company. The technology infrastructure is also a costly activity that also creates disadvantages of JIT inventory management system. The disadvantage is also related to the quickly response to the company. In order to meet the demands of customers, if company buyers fail to adjust quickly to increase demand or have some distribution problem of suppliers, the JIT system does not perform well in the market.
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