Topics: Supply chain management, Supply chain management terms, Inventory Pages: 2 (355 words) Published: May 3, 2013
* As how the food supply chain management work,
McDonalds, order raw material from suppliers. * Once transaction is made, goods of raw material deliver right way. * After raw materials are delivered to McDonalds, McDonalds will start pay off their debt. * McDonalds purchase raw materials from multiple suppliers. * McDonalds faced difficulties managing the massive load of transaction data. * Error occurs when too much transaction is made.

* In order to overcome the problem of inventory management , may leads to the decreased quality of the raw materials. SOLUTION
* McDonalds is currently implementing Transaction Processing System (TPS). * TPS is a computerized system that performs and records the daily routine activities of a business. * TPS helps McDonalds to keep track of the elementary activities and transaction. ISSUE-2

* The amount of inventories are forecasted based on observe and estimation. * When forecasted demand varies from the actual demand, excessive inventories exist. * High amount of inventories put McDonald at risk.

* As the inventories is increasing but not decreasing due to wrong estimation and observe. * The over dated materials can decrease the quality of food and also could bring harms to consumers. SOLUTION

* The solution of this issue is using the Decision Support System (DSS). * It gathers information from external sources such as product price. * Competitor and demand in Fast Food Company.

* McDonalds is now able make more accurately on purchasing inventories.

* When it comes to overcrowded where the demand is overly high. * McDonalds will be fully occupied with people and this cause customer-traffic. * The flow of information from the counter to the kitchen is not fast enough. SOLUTION

* McDonalds implements Points of Sale System (POS) to achieve maximum customer...
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