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Operations And Supply Chain Management
Found in: Page 293
Operations And Supply Chain Management

Operations And Supply Chain Management

Book edition 14th
Author(s) F. Robert Jacobs
Pages 800 pages
ISBN 9780078024023

Short Answer

What is the difference between McDonald’s old and current processes?

A production approach in which manufacturing scheduling, as well as planning, are depending on item need forecasts.

See the step by step solution

Step by Step Solution

Make-to-stock as well as Make-to-order

McDonald's previous approach was a make-to-stock one, in which requests were taken from produced items. McDonald's new methods, on the other hand, will gather. As a result, McDonald's promise of a cleaner burger must be true. Burger King's methodology is a hybrid of McDonald's old as well as modern methods.

Burger King's greatest chance is to mirror McDonald's menus that are assembled to order. Those collected from finished products are less likely to be as fresh. However, Wendy's must be able to outperform all McDonald's as well as Burger King in terms of cleanliness because they prepare a meal (make-to-order)!

The difference between McDonald’s old and current processes is Make-to-stock as well as Make-to-order

This make-to-order procedure is only started in reaction to a valid request. Stock is reduced to a minimum (including work-in-process as well as finished items). In theory, reaction duration should be sluggish since all actions must be performed before the item is supplied to the client. Service, by definition, uses make-to-order procedures.

By establishing a high-volume method, McDonald's changed the burger procedure. The entire operation was handled by a human who assessed current needs as well as place orders to maintain stock in the container at a proper level. This is a very effective make-to-stock method that yields standard items that can be provided to the client rapidly.

This short method appeals to households with little kids who value the quickness of delivery. In principle, a make-to-stock process results in completed items stock, from which client orders are fulfilled. The real, as well as predicted quantity of completed goods stock can be used to govern a make-to-stock procedure.

A goal inventory level, for instance, may be defined, as well as the procedure would be executed regularly to ensure that level. When demand is cyclical, make-to-stock procedures are also utilized. In this situation, the stock may be created throughout the slow period as well as consumed throughout the busy season, permitting the system to continue at a consistent rate all year.

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