Assignment 2: Inventory Management
The products are highly consumed. Therefore, the need to ensure that inventory is properly managed. McDonald uses the just in time (JIT) approach in handling its inventory. JIT ensures that goods are finalized after order placement (Pride and Jack pg. It also serves as a control method on loss reduction and optimization of profits. The goods are worked on after order placements. It reduces disposal of unsold products since the organization works only on the already bought products. Types of stock/inventory at McDonalds. There are three types of stock in every business which include; raw materials, works-in-progress and finished goods. At one time, any restaurant might have such products. In this case consider big Macs fish-o-fillets. The above stock takes the order of first in first out (FIFO). All raw materials, works-in-progress and finished goods are consumed in the order of first in first out. If the order of last in first out (LIFO) was used, then the products sold late would...
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