Promotes customers Essay Example

are able to respond efficiently to non-routine situations. McDonald's also uses a just in time inventory system, where they only prepare burgers upon receiving an order, unlike their manual system of cooking and storing burgers under heat lamps. The JIT system has reduced wastage and resulted in freshly made burgers for customers, which enhances their experience.

McDonald's utilizes state-of-the-art machinery, such as the bun toaster, to efficiently produce hamburgers in minimal time. Their newly implemented Just-In-Time (JIT) system not only reduces raw material inventory, but also provides customers with faster service, solidifying its status as a true fast food establishment. This system also results in increased food quality and decreased costs. By streamlining the burger assembly process, ordering costs have been reduced and inventory management has become more efficient. McDonald's now boasts a record time to make their burgers, eliminating the need for excessive inventory. The JIT system has also decreased holding costs previously incurred due to spoilage of unused burgers.

McDonald's used to impose high fees on customers because of spoilage costs resulting from maintaining a large inventory. Nevertheless, the company has recently implemented significant alterations to its procedures in order to minimize inventory and cut down on spoilage expenses. Consequently, customers are no longer required to bear these costs.