The Logistics Of Mcdonald s Supply Chain - 983 Words

The amount of customers demand has influence on the amount of supply required from suppliers. Increase in demand results in increase of supplies to meet the required inventory. In addition, a decrease in demand will also require the inventory to be reduced. Hence, demand has a one way direction effect on the supply chain. The logistics of McDonald’s is divided into three phases just like in most other companies. Inbound logistics phase involves the activities that take place between the delivery of supplies and their storage. The next phase is where the operation processes take place. Usually, it involves activities that create the end product, ensuring that its quality meets the customer’s expectations. Capacity Planning For both Hard Rock Cafà © and McDonald’s, the major bottleneck is the time taken in the operation process. This bottleneck can be eliminated by reducing the time customers take in queuing and in order delivery. Both companies have similar operations hence similar bottlenecks. In this case, the identified bottleneck is the problem associated with the delivery of goods by suppliers. According to the theory of constraints, the first step is identifying the constraint. One points out the part of the process that limits the rate of all the other processes. The next step is exploiting the already identified constraint. For instance, if the delivery of goods takes a lot of time, one should check for ways to reduce that time maybe by using suppliers that are closeShow MoreRelatedOperations Management for Mcdonald963 Words   |  4 Pagesfast food chains, it is no doubt that McDonald s is successful in the world. It is known to all from children to elder. This is closely relevant to organization operation that produces food and services. Operation plays an important part in developing organization. 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