Bullwhip Effect on the Inventory of QSR Industry - The Case of McDonald''s Taiwan

• Main Authors: Hsin-Hao Wu, 吳昕顥
• Other Authors: Chung-Hsing Huang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/64818411261490085457

碩士 === 國立臺灣大學 === 商學研究所 === 93 === This case study of McDonald’s Taiwan is to analyze the business implementation and information flow delivery in its supply chain processes, namely sales forecast, material planning, ordering and fulfillment. Study purpose is to understand how bullwhip effect existing in the supply chain processes impacts the inventory of Quick Service Restaurants industry, further to identify causes of bullwhip effect and propose solutions to deal with the issues in the aspects of information flow, business process and organization structure. The cause of bullwhip effect identified in this study are presented as follows： 1. Partial and time-lagged information with one-way and fragmented delivery resulted in bias on demand forecast and inventory management. 2. Unable to provide daily updated store material inventory data resulted in difficulty for inventory management. 3. Demand forecast and inventory management based on limited and biased information, together with reasonable decisions to avoid material shortage and maximize business opportunities, resulted in bullwhip effect exists in the supply chain. 4. Failed to make inventory cost as one of the key performance measures for corporate operating stores resulted in difficulty for stores to implement inventory management. Proposed and proven successful solutions to fix the problems are： 1. Build store perpetual inventory system supported by information technology, which enable to provide daily updated store material inventory data. 2. Establish timely updated, synchronously shared information flows throughout the entire supply chain members. 3. Improve sales forecast methodology and material planning operations through business process redesign, to avoid bullwhip effect caused by human judge. 4. Implement “Vendor Management Inventory”and “Auto-replenishment”system to solve the management dilemma for corporate operating stores.