Analysing Mc Donald’s Supply Chain Management

Abstract —There are some complex and compelling challenges that global manufacturing industries should face, which includes price fluctuation, supply-chain inefficiencies and increasing customer expectations. In order to meet the demand of this economic environment, manufacturers need to find innovative, smarter ways to face those challenges. Thus, the efficient inventory management becomes urgent to manufacturers and it could help improve profitability and increase customer satisfaction. This paper aims to talk about what inventory management is and its importance, what problems inventory management might have and how to improve inventory management efficiency.

This essay explains in a first part what supply chain is. Then in a second part, it defines the term of inventory and this purpose. Finally the last part considers the key role of inventory in the supply chain and how is controlled.

Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.

Assuming weekly periodic review replenishment, a Lead time equal to four and a half weeks and a policy of satisfying 98 percent of customers demand from items in stock the safety stock would be:

Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.

Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay

Supply chains are an integral part of global quality and cost management initiative, because a typical company’s supply chain cost can represent more than 50% of assets and more than 80% of revenues. (Ball, 2010), in other word, the ABC, Inc should reduce the inventory of chain supply to reduce the cost. In order to do that the Board of Directors of ABC Inc. has to expresses reconsiderations for management across business functions in supply chain management. Managing the flow of raw materials, supplies as well as finished products are equally important as the management

The Supply-Chain Council defines supply chain management as “[m]anaging supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer” (Wisner, Leong & Tan 2005).

In businesses, most of the functions are interlaced and connected to each other with key aspects like supply chain management, logistics and inventory management forming the backbone of the business delivery system. Inventory management helps company determine the health of the supply chain as well as impact the financial well-being of the organization. Every organization therefore constantly tries to maintain optimal inventory curbing on the wastage due to their traditional policies service level such as tracking of inventory by humans.

Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between

Exceptional decision making coupled with the timely integration of related systems within the supply chain result in the reduction in transport and operation costs, lower inventory echelons and asset efficiency not to mention timely and accurate responses to both problems and opportunities. According to Clements, Wilson & Bacanaru (2014), there are three

Today’s business has become more competitive and requires cost effective solution to give a better quality product to the customer. The productivity advantage of supply chain management gives a winning edge to the suppliers. More production has been possible in recent times dues to better management of

Stock management and purchasing are two closely linked internal factors in the business vital to providing quality products. Purchases are reliant on stock levels and must have management approval. Factors such as quality control, availability of produce, seasonal customer preferences, supplier availability and supplier relationships all play a role in the ability for the business to create value through these internal functions. Some of these external factors can be partially controlled; for example availability of produce and quality control can be managed by ensuring supplier relationships are strong. Stock management has a

In a 1974 case study, the author sought to address inventory carrying costs and he represented these costs as a percentage of that year’s average inventory value (Hall, 1974). Hall identified four main cost categories for calculating inventory carrying costs: cost of capital invested in inventory, the cost of inventory facilities, the cost of servicing inventory, and the cost of inventory risk. The problem remained that no clear methodology had been developed to help walk managers through the process of accurately capturing the costs associated with carrying inventory.

In this report we have focused on supply chain inventory management and technology selection practices and how it is beneficial for the firm. In the firm operations are linked with different strategies. For example the change in supply chain has an effect on inventory management as well as technology selections. At the end we have given some