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Delicious Burgers Lid is a chain of fast food restaurants in Australia. In recent years, Delicious Burger Lid has been experiencing significant food wastage due
Delicious Burgers Lid is a chain of fast food restaurants in Australia. In recent years, Delicious Burger Lid has been experiencing significant food wastage due to the lack of better inventory ordering and management practices. Delicious Burgers is considering implementing just-in-time (IT) inventory system. During a work meeting, the CEO and financial controller discuss the move towards a JIT system as below. CEO: "We need to have a better inventory management system. There are currently too much food wastage and spoilage. My understanding is that JIT system reduces the inventory we hold on hand. If that is the case, wouldn't it greatly reduce our food wastage?". Financial controller: "Notwithstanding the great benefits that JIT system can bring, my past experience suggests that a proper implementation of the JIT system requires an organizational level change because its misuse may have profound adverse impact on our line of business". Required: a) Discuss three (3) key conditions for a successful implementation of JIT in a business like Delicious Burgers. b) Do you agree with the financial controller's suggestion? Highlight two (2) adverse consequences of an ineffective implementation of JIT. (word limit: max 40 lines). 1 A Y B U I E E
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