Essay on Supply Chaiin Management Practices at Kfc Pakistan

5458 Words Mar 2nd, 2009 22 Pages
TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

Introduction: 4

Plan 5 Source 5 Make 6 Deliver 6 Return 6 Just-in-time (JIT): 7 Stocks: 7 Safety Stock: 8 Stock Taking: 8 Lead time: 8 Inventory control: 9 Transaction cost approach: 9 Environmental concerns: 9 Sourcing to Delivery: 10

Inventory Management 10

Enterprise Resource Planning System 11

Material Requirement Planning System 11

Demand Forecasting and Order Management System 11

KFC an Overview 12

Cupola Group 13 Vision 13 Mission 13 Facts 14

Supply Chain Management at KFC 15

Planning 15 Planning Department 15 Functions 15 Planning Inputs 16 Initial Steps 16 Sourcing 17
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Just-in-time (JIT):

It is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated carrying costs. In order to achieve JIT the process must have signals of what is going on elsewhere within the process. This means that the process is often driven by a series of signals, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency. Some have suggested that "Just on Time" would be a more appropriate name since it emphasizes that production should create items that arrive when needed and neither earlier nor later.
Quick communication of the consumption of old stock which triggers new stock to be ordered is key to JIT and inventory reduction. This saves warehouse space and costs. However since stock levels are determined by historical demand and sudden demand rises above the historical average demand, the firm will deplete inventory faster than usual and cause customer service issues.

Stocks:

JIT emphasizes inventory as one of the seven wastes (overproduction, waiting time, transportation, inventory, processing, motion and product defect), and as such its practice involves the philosophical aim of reducing input buffer inventory to zero. Zero buffer inventories means that production is not protected from exogenous (external) shocks. As a result,

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