Inventory management is one of the most important aspects of any business, especially those that are dealing with manufacturing of goods. Inventory management entails the receiving, processing and distributing of raw materials and finished goods. There are different reasons why firms need to use inventory management control techniques, some of the reasons are; provider better customer service, to have control of inventories, to increase productivity, and to create a better method of warehousing, just to name a few. McDonalds uses just in time (JIT) inventory control system, this system helps them to better serve customer while minimizing cost of storage by storing a minimum amount of materials in order to match quicker service and maintain fresh taste. “Between 1999 and 2000, McDonald’s had an inventory turn rate of 96.1549, incredible for even a high-turn industry such as fast food. This means that every 3.79 days, McDonald’s goes through its entire inventory.” (Kennon, J., n.d) Inventory control is can help a firm provide superb services at a very minimum cost. By controlling its inventories a firm increases the efficiency by which raw materials are handled in regard to production.
The Essay on Inventory Control System and Restaurant
In the study conducted by Md Taha Hanisha entitled Online Restaurant Management System (2008) a system that provides service facility to restaurant and also to the customer. The services that are provided are food ordering and reservation table management by the customer through the system online. With this system online, ordering and reservation management will become easier and systematic to ...
When a firm has a better integration of its different departments it makes it easy for the handling of raw materials and finished goods, thus the delay between the firm and the customer is eliminated since there is a coordination on the movement of the manufacturing process to all the way to the finished product, and from there to the customer. The existence of clear channels of communication leads to the increase in productivity, this is another one of the use of the inventory management control according to an article in the small business encyclopedia which stated that “the key to getting productivity gains from inventory management is placing real-time intelligent information processing in the warehouse.” (Encyclopedia of small business, 2002) Inventory control plays a big role in creating a better and well organized warehouse and as a result of this a firm cut losses that would otherwise have been incurred through time lost in locating stored items and poor customer service because of delays in delivering goods. “A well-organized, user-friendly warehouse layout can be of enormous benefit to small business owners, especially if they are involved in processing large volumes of goods and materials.” (Inc., n.d) So it is important to have a well organized warehouse in order to cut unnecessary losses.
To conclude one could say that business inventory control is a vital part of any organization as it has many beneficial uses for a firm in an attempt to provide customer satisfaction and increase firm’s profitability. It is therefore necessary for the management of a firm to have a strategic plan that will recognize the space for business inventory control.
References
Encyclopedia of small business. (2002) Inventory control systems. Retrieved from http://www.enotes.com/inventory-control-systems-reference/inventory-control-systems-178565
Inc. (n.d.) Inventory control systems. Retrieved from http://www.inc.com/encyclopedia/inventory-control-systems.html
The Term Paper on Business systems within Japan and China
The following essay will compare and contrast business systems within Japan and China. To begin with a short theoretical description of a business system will be given as well as stating key elements in Japan and Chinas business systems. Relevant theories and use of comparative country and corporate examples will be used for support throughout the essay. One will use 3 areas for contrasting and ...
Kennon, J. (n.d.) McDonald’s vs. Wendy’s: A case study in inventory on the balance sheet. Retrieved from http://beginnersinvest.about.com/od/analyzingabalancesheet/a/mcdonalds-vs-wendys.htm
