Background of the Study
Fast food industry has been in existence for the past years. The growing popularity of the industry gave way for many businessmen to put up many branches or chains in different parts of the country. This leads to the birth of fast food chains, by which Jollibee, McDonalds, KFC, Mang Inasal, Chowking, WOK Express and Greenwich are few examples. People prefer to go into fast food chains not just because of their food preference but because they serve their customer in a quick manner. Since their products are in demand to the customers, they need to maintain a specific level of inventory in order to respond to the needs of their customers. Because of the unpredictable demand of customers, management of fast food chains is struck in a dilemma of ordering the right level of their raw materials for production. That is why it is important that fast food chains know the policies in determining their inventory level or size. The size of inventory stocked by fast food chains depends on forecasted requirements and product popularity as demanded. Inventory shortage or erratic delivery of ingredients for production can prevent the manufacturer from completion of its finished products.
The importance of the study includes knowing if low or high level of inventory will have great effects on production of fast food industry. Studying the inventory levels of fast food chains and their effects on production will allow the researchers to venture more into the depth of the inventory process of each business.
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