Operation Management MW1:00 pm-2:15pm
April 13, 2015
Darden’s Global Supply Chain
(a)Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando. The firm owns several casual dining restaurant chains: Olive Garden, Longhorn Steakhouse, Bahama Breeze, Seasons 52, Eddie V's Prime Seafood, The Capital Grille and Yard House. Until July 28, 2014, Darden also owned Red Lobster. Darden has more than 2,100 restaurant locations and more than 200,000 employees, making it the world's largest full-service restaurant company. As of 2012, Darden is the only Fortune 500 Company with its corporate headquarters in Greater Orlando. Darden's supply chain is large and complex. They buy about $2.5 billion in food products from 2,000 suppliers in 35 different countries every year which affects the environment, local economies and people's lives in myriad ways. For example, all of the different foods they purchase require inputs of water, energy and other natural resources to produce and process. The food and other products they purchase must also be packaged and transported to our distribution centers and then to more than 1,500 restaurants. Hundreds of thousands of people's livelihoods depend on helping produce or provide the goods and services they buy. (b)Darden has four important supply chains. The first is small ware for linens, dishes, tableware, kitchenware and silverware. Those items come directly from their headquarters ensuring the highest quality shipped to each restaurant. The advantage from this supply chain is that from a single warehouse, all items are shipped via a common carrier to all the near places. They therefore diminish the shipping price of the small items. The second supply chain is for frozen, dry and canned food products. Its advantage is that it is handled economically by Darden distribution centers in North America. They are managed by major US foods distributors. The third supply line is the...
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