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Just in-time inventory system

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Just in-time inventory system

  1. 1. Just-In-Time Inventory System McDonald’s Corporation• An inventory system designed to produce efficient output with minimum lead time at Process Overview the lowest possible cost, minimizing waste, with great consistency. Take order• Objectives: Pull inventory Manage Sales - Create only want the customer wants at Prepare order Inventory Forecasting the rate the customer needs them. - Produce at products of consistent high quality. Order Completed - With minimal waste of labor, material, and equipment. Served to the customer
  2. 2. Just-In-Time Inventory System McDonald’s Corporation Advantages Disadvantages• Improved quality of food • Difficult to implement and maintain• Better customer service • Dependent on accurate forecasting• Lower costs • Standardized popular products• Improved material handling and • Process must be managed closely for inventory control consistency and efficiency.
  3. 3. References1.http:/ / www.inventorymanagementrev iew.org/justintime/2. http://en.wikipedia.org/wiki/Just-in-time_(busin3. Lakshmi, Dr. L. (2010). The Articlesbase.com. Retrieved from http://www.articlesbase.com/business- ideas-articles/the-concept-of-just-in-time- management-1879039.html
  4. 4. Notes for conclusionMcDonald’s has mastered Just-in-time inventory management through a commitment of significant investment in technology and resources to design a system that will produce consistent quality food with minimal inventory, with a production process that maximizes efficiency and minimizes waste.

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