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Mondelez International are the company that own the brands Cadbury. The natural Confectionary Company and Pascall. They are looking at renewable electricity options for

 QUESTION 2: Inventory management (JIT) and Customer profitability TOTAL [20 marks] McDonalds one of the most popular fast foo  

Mondelez International are the company that own the brands Cadbury. The natural Confectionary Company and Pascall. They are looking at renewable electricity options for their two (2) Melbourne factories. They expect that investment in this type of renewable energy (solar powered windmills) will prevent approximately 200,000 tonnes of carbon entering the atmosphere each year and reduce the carbon footprint from electricity from the factories by 80%. Factory 1-estimated electricity reduction per annum - 30,000 MWh (mega watt hours) Factory 2 - estimated electricity reduction per annum-25,000 MWh The city of Melbourne has facilitated a power purchase agreement for businesses who take part in renewable energy projects and is offering a rebate of $10 per MWh. The estimated life of this project is 5 years. Mondelez has two (2) alternatives for investing in this project, both of which are suitable to the City of Melbourne as part of their renewable energy projects initiatives. 1. Mondelez can engage a provider (Reduce Carbon Pty Ltd) to provide the infrastructure for this project and will agree to pay them a fixed rental fee for the required infrastructure. Mondelez would pay Reduce Carbon an annual fee of $20,000 per year for the rental of the infrastructure for the next 5 years. Other associated charges would include maintenance costs per MWh (mega watt hour) of emissions at $20 per MWh based on estimated electricity reductions for each factory. Under this option, it is estimated that approximately 150,000 tonnes of carbon will not enter the atmosphere. 2. Mondelez can invest in the required infrastructure at a cost of $200,000. Mondelez has estimated that the operating costs of this initiative to be $25 per MWh based on estimated electricity reductions per annuum for both factories. Mondelez would also be eligible for the City of Melbourne rebate of $10 per MWh per annum. This rebate is to be calculated based on estimated electricity reductions for factory two (2) only. Estimates under this QUESTION 2: Inventory management (JIT) and Customer profitability TOTAL [20 marks] McDonalds one of the most popular fast food burger outlets in the world, has successfully implemented a Just in time system (JIT) into its production processes. According to McDonalds, they produce only the products the customer wants, at the rate and quality at which the customer wants them, within a minimum time frame. Inventory Management [5 marks] Based on the statement above, what features of the JIT system do you think have allowed McDonalds to be successful with its JIT implementation? Please list and explain five (5) features of a JIT system that would be relevant to the McDonalds business.

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