Essays on Carrying Cost

1.1 Describe with examples, some of the characteristics of food production and food and beverage service systems that is in use within the hospitality industry. The food and beverage industry are a multi-billionaire industry, that has catered to many, making it a new industry that people can look forward to. There has to be a system, that the service directors are using to inherit a food service system that are to be followed by the directors all day-long.An option in food service industry is what we are bound to look for if there has to be a look-out and fixed system in food ...

Inventory Costs

Introduction Production can be described as a flow concept, which measures the volume of output per unit of time. The efficiency of production refers to the proportion of total resource content that can be transformed into a product that can be sold to the market. There are a number of ways that can be used to improve the efficiency of production techniques that are used by the firm. These strategies are either qualitative or quantitative in nature. They are the subject of discussion in this report.

Raw materials refer to the inputs used in developing the final product. They are the ...

Summary of the Case

Maddux has established two game program suppliers, one local and another one in a different town. He is faced with a decision on which one to pick with their different cost for printing programs and the cost involved in delivery of programs to the university. Another challenge he is facing is whether carrying inventory will be economical for the university. Maddux is pressured to keep the costs of the game programs low and maximize profits. The stadium is expected to have an attendance of 60,000, which is dependent on the team performance and the opponent the team is playing. ...

Light bulbs:

The probable cost structure of light bulbs is as follow (Apte, Maglaras, and Pinedo, 2008): Item cost: Light bulbs are purchased in bulk quantity because it has a small packaging and do not have an expiry date so it can be stored for a longer period as well.

Carrying cost:

It has a high carrying cost because of the bulk purchasing it need space to get store or placed for a long period until it gets to sell.

Ordering cost:

It has one time ordering cost in a month because it is in bulk quantity so it is delivered by the truck for once in a ...

Operations Concept: Aggregate planning

Planning means the ability to set performance goals and expectations for individuals and groups to direct their efforts in achieving the organization’s objectives (David, 2010). Planning also deals with the standards that are applied in order to determine the outcomes from the set objectives and goals. Employees should be included in planning; this is to enable them gain knowledge on what duties they must undertake. It is also necessary to make the employees aware of the right procedure expected in carrying out their responsibilities. This will ensure that they can then be accountable against the output they deliver ( ...

Executive Summary

McDonald’s, with its huge customer base and steadily increasing revenue, has proved the excellence of it operations management. Operations management can be defined as a long term strategy that shapes a company’s operations in such a way that it is aligned to organisational goals, market requirements and available resources. The objective of this paper is to delve through the effective operations management strategies of McDonald’s that have significantly contributed to its huge success. It studies the various the components of operations management and how effectively it has been utilised in McDonald’s. The corporation is the leader in ...