Inventory Management:
The process of making sure there is enough stock at all times to meet customer demand whilst minimising expensive waste is known as stock management. High cost is involved in holding too much stock so McDonalds uses lean stock control method to save money. (Refer Appendix A for further explanation of Inventory Control)
Inventory ordering manager work with the new stock control system, Manugistics, to ensure sufficient raw stock is available. This helps restaurant to produce the meals required according to the forecasted demand. Forecast is done on the basis of restaurant historic product-mix data from last year, store-specific and national causal factors such as national promotions and school holidays, information from store managers about factors that might affect demand .e.g. road closure or local events and new promotions. (McDonalds Website: December 2009)
Restaurant manager need to ensure that the data they enter into the system is as accurate possible. Every day restaurant manager record opening and closing stock of key food items. Other items are recorded weekly and monthly basis. The store computers system identifies any stock count deviations from last stock count so it gives opportunity to manager to investigate missing product. For example, the manager may have missed off a box of regular meat while counting them earlier on the shift. (McDonald's website: December 2009)