Mcdonald 's Supply Chain Management

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Introduction McDonalds is one of the world’s leading fast food chain restaurants. It account for the total of over 30,000 restaurants in over 119 countries. All these McDonalds restaurants serve around 50 million people every day. There are ups and downs in every business. Every business has to face challenges over the time. Out of those challenges, one of the major challenges faced by McDonalds was supply chain management. Supply chain management involves creating a balance between minimising wastage as well as at the same time meeting customers’ needs. Wastage is reduced by two major steps:- • Accurate forecasting (product is not ordered in excess) • Accurate supply control of raw material. Supply chain management involves creating…show more content…
The core role of this department was to communicate with restaurant managers on a regular basis and get updates on all the local events. This team then consider these factors and make best use of supplied information to forecast likely demand of finished menu items like Big Macs using new planning and forecasting system called Manugistics. This case study will cover how McDonalds manage its supply chain through its all new management system and what benefits does this brings to them. Different Types of stock Stock can be any physical product a company buys, creates or sells. Stock can be differentiated into three different types:- Raw material- Raw materials and any ingredients used by McDonalds that will go into producing the finished product. For McDonald 's, these will include the buns, beef patties, paper cups, salad ingredients and packaging. These are delivered to the restaurants between 3 and 5 times a week. The raw materials arrive together on one lorry with three sections so that each product can be stored at a suitable temperature. The three sections are: • Frozen (raw materials need to be stored frozen i.e., below -18° Celsius) • Chilled (food items which requires temperature to be below 4° Celsius) • Ambient (items that can be stored at room temperature) Work-in-progress (WIP) Work in progress refers to stock that is used in the process of making final product by making use of raw material. For example, a Big Mac consists of bun, two beef patties,
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