Hello, I am looking for someone to write an essay on The specific title should be adapted from the following example: The case of Company X. It needs to be at least 1250 words.
McDonald successfully implemented the Just-in-Time (JIT) model in its inventory system. McDonalds is one of the top fast food chains globally. The food chain has a presence in more than 120 countries worldwide and more than 30,000 restaurants (Grof, 2013). The company employs over 1.5 million workers and serves more than 50 million customers on a daily basis (Grof, 2013). When a fast food store inventory is poorly managed, a lot of wastages are encountered leading to heavy losses. In the McDonalds world, JIT means giving the customers the hamburgers, ice creams, French fries and the cold drinks immediately they ask for them. Initially, McDonalds had a very primitive inventory system where the foods were pre-cooked and then left on the heat lamps to keep them warm until that time when the customer placed an order (Eric, 2014). The old system saw a lot of hamburger and other products discarded when the consumers never made purchases. Additionally, the customers were denied to have a taste of fresh hamburgers. Due to the wastages and losses associated with the pre-cooking conventional method. McDonalds shifted to the JIT system, where the food was cooked only when a customer placed an order.
The JIT system brings in a lot of benefits to the McDonalds system over the traditional system. Removing the work in progress materials decreases the holding costs (Japan Management Association). JIT is also effective when it comes to detecting flaws in the inventory during the working flows. Since most of the material only get supplied when needed, the situation where some part of the inventory needs to be reworked, supplied a fresh, discarded is eliminated. JIT is a good recipe to tighten the relationship between the supplier and the producer, giving better opportunity for linking with product development, engineering, and quality control as it is in the best interest of the supplier to decrease the production line variability.
Fast food industry characteristics