Just-in Tome Inventory system

1. Just-In-Time Inventory System
McDonald’s Corporation
• An inventory system designed to produce
efficient output with minimum lead time at Process Overview
the lowest possible cost, minimizing waste,
with great consistency. Take order
• Objectives:
Pull inventory Manage Sales
- Create only want the customer wants at Prepare order Inventory Forecasting
the rate the customer needs them.
- Produce at products of consistent high
quality. Order
Completed
- With minimal waste of labor, material, and
equipment.
Served to
the customer

2. Just-In-Time Inventory System
McDonald’s Corporation
Advantages Disadvantages
• Improved quality of food • Difficult to implement and maintain
• Better customer service • Dependent on accurate forecasting
• Lower costs • Standardized popular products
• Improved material handling and • Process must be managed closely for
inventory control consistency and efficiency.

3. References
1.http:/ / www.inventorymanagementrev
iew.org/justintime/
2.
http://en.wikipedia.org/wiki/Just-in-time_(busin
3. Lakshmi, Dr. L. (2010). The
Articlesbase.com. Retrieved from
http://www.articlesbase.com/business-
ideas-articles/the-concept-of-just-in-time-
management-1879039.html

4. Notes for conclusion
McDonald’s has mastered Just-in-time
inventory management through a
commitment of significant investment in
technology and resources to design a
system that will produce consistent quality
food with minimal inventory, with a
production process that maximizes
efficiency and minimizes waste.