Inventory System Essay

Inventory management is vit all(prenominal)y important for some(prenominal) business that sells a physiological yield. An inventory system must balance having enough inventories on hand to graceful the demand of customers while investing as little money as possible in inventory. Perishable products add an early(a) dimension of management considerations beca usance they must be cycled done the inventory system more(prenominal) fondly and stored in a commission that preserves their value. An inventory hold back system is an integrated package of softwargon and hardware used in warehouse operations, and elsewhere, to monitor the quantity, perspective and status of inventory as well as the related shipping, receiving, picking and put away processes. In common usage, the term may also list to just the software servings. An inventory control system may be used to automate a changes order fulfillment process.Such a system contains a list of order to be filled, and then prompts workers to pick the necessary souvenirs, and provides them with packaging and shipping information. It is a supervision of the supply and storage and accessibility of items in order to insure an adequate supply without excessive oversupply. Inventory management systems are software programs used to maintain, gather and track inventory from the result it r distributivelyes a retail setup to the moment it is sold. Automation has increased the efficiency and accuracy of inventory management, allowing companies to get information about a particular products sale levels and whether it is time to reorder at the very moment the item reaches a predefined stock level. The McDonalds started in 1954. Raymond Kroc who is the fo on a lower floor saw a hamburger stand in San Bernardino, California and visualized a nationwide fast food compass. Kroc tested himself as an ancestor who revolutionized the American restaurant assiduity.Actually, Raymond Kroc is respect being the Farther of Indus try. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell barely hamburgers, milkshakes and French fries. As per the information of the McDonalds history, the major revenue came from hamburgers, which were sold at a nominal price of 15 cents. The restaurant gradually became famous and the McDonald brothers begin franchising their restaurant in the form 1953. The first franchise was taken by Neil Fox and under it the second McDonalds restaurant was opened in Fresno, California. It was the first to introduce the Golden smashed design. The third and fourth restaurants were opened in Saginaw, Michigan and Downey, California, respectively. The latter is the oldest McDonalds restaurant still in operation. In 1954, an entrepreneur and milkshake-mixer salesman, Ray Kroc, acquired the franchise of McDonalds restaurant for outside California and Arizona.In effect, Kroc opened his first and the overall ninth restaurant in Illinois , Chicago, and gave birth to McDonalds Corporation. In 1958, the restaurant chain sold its 100 millionth hamburger. In 1960, Kroc renamed his company as McDonalds Corporation. In 1961, Kroc convinced the McDonald brothers to sell the business rights to him for a sum $2.7milion. by and by that year, the Hamburger University was opened, which gave away McDonalds restaurant Bachelor of Hamburgology degrees to students. In 1963, the mascot Ronald McDonald was born as a part of a marketing strategy in US. In 1967, the first restaurant outside US was opened in Richmond, British Columbia. In 1974, the 3000th restaurant opened in Woolwich, United Kingdom, which is the first of the country. Happy meal was introduced in US in 1979.In 1984, the company became the main sponsor of the Summer Olympics. The year was also marked by the death of Ray Kroc. In 1988, the first restaurant opened in a communist country in Belgrade, Yugoslavia, followed by the first Soviet restaurant in Moscow (1990). I n 1992, the largest McDonalds was opened in Beijing, China, having over 700 seats and was later demolished. In 1993, the first sea-going restaurant was established, aboard the Finnish Cruise-ferry Silja Europa, sailing among Helsinki and Stockholm. In 1994, McDonalds bagged the Catalyst Award for its program for fostering leadership development in women. In 1996, the first Indian restaurant was opened. In 2003, the company launched the Im lovin it campaign. In 2005, McDonalds started its McDelivery service in Singapore. In 2006, the chain announced that it will publish nutritional information on its packaging of all its products, for the benefit of the customers. Considering the huge success and brand McDonalds has become, the food chain is spread across the world in almost all the major cities of the globe. macrocosm economic and user friendly, the success rate of the company can non be doubted. In 1985, the first McDonalds restaurant in Thailand was opened at Amarin Plaza. Curren tly, there are more than 100 McDonalds restaurants nationwide with a ring of convenient services at anytime and anywhere which including breakfast meals from 5.00-11.00 Am., Drive -thru, Dessert kiosk and McCafe. Besides, there is the McDelivery service on 1711 running from 9 Am. until midnight and some restaurant also offer 24-hour service to serve. Through the years, McDonalds remained the worlds top quick service restaurant. With more than 33,000 branches in more than 120 countries around the globe, McDonalds has served billions of customers since its first restaurant in 1955. McDonalds history began even before the blast of the Second World War when brothers Dick and Mac McDonald started a drive-in restaurant business in Riverside California.Their menu was composed simply of 10-cent hamburgers and other drive-in products. After the war, the brothers opened a new fictional character of restaurant in San Bernardino, California, where a little hamburger man called Speedee became the companys emblem Dicks and Macs endeavors proved so successful that other operators sought out franchises from them. In 1954 Ray Kroc exclusive sales electrical distributor for Multimixer intrigued by the brothers Speedee scheme visited the latter in San Bernardino, Upon his return to Chicago, Kroc obtained the exclusive licensing rights to the brothers system and had become heir National Franchise Agent in April of the same year construction began on the first restaurant in what was called the Mcdonalds System Inc.The famous Golden Arches arrived in the Philippines in 1981 when George T. Yang president of McGeorge nutrition Industries was awarded franchising privilege in the country by McDonalds international. The first store opened in the busy university area of Morayta while the second was established in the prime commercial area of Cubao beside New Frontier Theater. And now as they say, the rest is history. With the desire of providing Filipino customers with high pure tone food and service that meet global standards, George T. Yang, opened the first McDonalds store along Morayta, Manila in 1981. Since then, McDonalds has introduced so many innovations that captured the hearts of the Filipinos.It was McDonalds who first offered the note value Meals and the Happy Meal. It was McDonalds who first provided employment opportunities for students. And it was McDonalds who first played an active role in helping out in the community through McDonalds Charities. These and so many other firsts are the reasons for McDonalds phenomenal growth Today, with Kenneth S. Yang at the helm, McDonalds is now a multi-billion-peso company with almost 274 stores nationwide And still countingBackground of the StudyToday McDonalds is the largest brand of fast food restaurant that serve 52 million customers per day more than 100 countries. With the world-class standard, McDonalds unites the QSC&V standards strictly all McDonalds restaurants around the world. McDonalds is o ne of the leading restaurant chains in the world, tactile sensation the lives of people everyday. The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonalds restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed.Statement of the ProblemThe study attempts to know the more effective inventory control system that McDonalds should use. 1. To determine whether Perpetual or biyearly Inventory Control System is to be used by McDonalds 2. To determine whether McDonalds performs effectively and efficiently in managing their inventories 3. Are there times when McDonalds are out of stock because of wrong inventory? 4. Are there any problems in the accounting system of McDonalds?Significance of the StudyIn order to determine the type of Inventory Control System that McDonalds should use the researchers showed som e of the contributions to the management and customers For the management-this research study will help them choose the appropriate and more effective type of Inventory Control System in order to improve their management. For the customers-so that they would enjoy freshly made food.SCOPEThe study covers Inventory Control System such as Periodic and Perpetual System. Periodic System is a type of Inventory Control System in which merchandise purchases are recorded in the purchases account, and the inventory account balance is updated only at the end of each accounting period while Perpetual System is a type which has traditionally been associated with companies that sell small numbers of costly items, but the development of modern scanning and computer engine room has enabled almost any type of merchandiser to consider using this system. McDonalds follows a Just in Time (JIT) system of inventory management. JIT, as the name suggests, is the system of supplying products to customers a s soon as they have ordered for it, with minimal delay between placing the order and getting it in hand.McDonalds doesnt begin to cook or assemble or preheat their stuff until they receive a customer order. This was not the case earlier. They had a different approach to inventory management wherein they used to pre-cook a batch of hamburgers and sit under heat lamps. It used to keep them under the lamps for as long as possible and eventually discard whatever they couldnt sell. Hence customers couldnt enjoy freshly made food. The only way it could happen was by the customer giving a special order. It also covers the efficiency and effectiveness of McDonalds in managing their fast food chain, their service and the propitiation that they would provide for their valued customers.LIMITATIONThis research study is limited only in San Pedro, Laguna. McDonalds in San Pedro Laguna is located in Cataquiz Subdivision, National Hi-Way, San Pedro, Laguna. openingNull HypothesisThere is no signif icant difference in Inventory Control System in either Periodic System or Perpetual System. Alternative HypothesisIs there any significant difference in Inventory Control System in either Periodic System or Perpetual System?DEFINITION OF TERMS1. Inventory-The value of materials and goods held by an organization (1) to support production (raw materials, subassemblies, work in process), (2) for support activities (repair, maintenance, consumables), or (3) for sale or customer service (merchandise, finished goods, spare parts). 2. Control-Device or mechanism installed or instituted to guide or regulate the activities or operation of an apparatus, machine, person, or system. 3. System-An organized, purposeful structure that consists of interrelated and interdependent elements (components, entities, factors, members, parts etcetera).These elements continually influence one another (directly or indirectly) to maintain their activity and the existence of the system, in order to get throu gh the goal of the system. 4. Inventory Control System-A database used for storing and administering all types of data required for efficient and accurate warehouse inventory management. This may include modules or palm for keeping track of all items and locations, requisitions, back orders, required levels of inventory on hand, reorder points, lead times, inventory error tracking, and more. This type of system may embrasure with an ERP and other applications. 5. Effective-Having the desired result.6. Efficient-performing or functioning in the best possible manner with the least waste of time and effort having and using requisite knowledge, skill, and industry competent capable 7. Management-The directors and managers who have the power and responsibility to make decisions and oversee an enterprise. 8. The size of management can range from one person in a small organization to hundreds or thousands of managers in multinational companies. In large organizations, the board of direct ors defines the policy which is then carried out by the chief executive officer, or CEO. Some people agree that in order to evaluate a companys current and future worth, the most important factors are the quality and experience of the managers9. Perishable-goods that can lose its usefulness and value if not appropriately stored or transported, or if not utilized within certain period. 10. Periodic- a type of Inventory Control System in which merchandise purchases are recorded in the purchases account, and the inventory account balance is updated only at the end of each accounting period 11. Perpetual- a type which has traditionally been associated with companies that sell small numbers of high-priced items, but the development of modern scanning and computer technology has enabled almost any type of merchandiser to consider using this system. 12. Integrated- Strategy aimed at unifying different marketing methods such as mass marketing, one-to-one marketing, and direct marketing. Its objective is to complement and reinforce the market impact of each method, and to employ the market data generated by these efforts in product development, pricing, distribution, customer service, etc. 13. Information- Data that is (1) accurate and timely, (2) specific and organized for a purpose, (3) presented within a context that gives it meaning and relevance, and (4) can lead to an increase in understanding and reduction in uncertainty14. Process- Sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, machines, money) to convert inputs (data, material, parts, etc.) into outputs. These outputs then serve as inputs for the next stage until a known goal or end result is reached. 15. Accessibility- Extent to which a consumer or user can obtain a good or service at the time it is needed Ease with which a facility or location can be reached from other locations 16. Storage- Non-transitory, semi-permanent or long -term, containment, holding, leaving, or placement of goods or materials, usually with the intention of retrieving them at a later time. It does not include the interim accumulation of a limited inwardness during processing, maintenance, or repair.17. Software component- A software component is a unit of composition with contractually specified interfaces and explicit context dependencies only. A software component can be deployed independently and is subject to composition by third parties 18. Packaging- Processes (such as cleaning, drying, preserving) and materials (such as glass, metal, paper or paperboard, plastic) employed to contain, handle, protect, and/or transport an article. lineament of packaging is broadening and may include functions such as to attract attention, assist in promotion, provide machine identification (barcodes, etc.), impart essential or additional information, and help in utilization. See also packing.19. Shipping- The process of transporting an item, u sually through the mail. Shipping is a very basic, common way of getting an item from one place to another, or from one person to another. 20. Franchise- Commerce (1) A privilege granted to make or market a good or service under a patented process or trademarked name. (2) A business operating under such privilege. 21. Fast food chain- a chain of restaurants serving inexpensive food, such as hamburgers and fried chicken, prepared and served quickly.