n-N-Out focuses on quality of foods, fastness of service, and reasonable prices. In order to deliver the promised "quality you can taste" fast and cheap, In-N-Out has very simple menus: burgers (with some variants - one or two patties, cheese or no cheese, grilled or raw onion), fries and drinks (shakes, soda, lemonade, iced tea, coffee). It requires very few ingredients: buns, beef patties, American cheese slices, lettuce, tomato, proprietary "spread" (condiment blend), onion, potatoes, vegetable oil (for frying) and limited selection of beverages. While In-N-Out offers a large "secret menu" with twists on its traditional items (extra patties, cheese on the fries, etc.), the "secret menu" only requires three additional ingredients (mustard, pickles, chopped chilies). In fact, while the "secret menu" only offers simple modifications to the core menu, knowledge of the menu offers a sort of "insider status" for those in the know, driving customer loyalty.

Because it requires so little variety in its ingredients, In-N-Out is able to maintain substantial control over its supply chain and to ensure that it is receiving the highest quality items. Most of its produce is sourced from farms in California, where two of its distribution centers are located. In-N-Out sources all of its own beef, individually inspecting every chuck that it receives. In-N-Out employs in-house butchers to break down and grind its meat, and forms patties in-house, maintaining absolute control over the patty-making process.

All ingredients are delivered fresh to In-N-Out stores, and each order is cooked fresh to order - even the potatoes are cut in-store and fried fresh. To speed up cooking times, In-N-Out uses thin patties, six to a pound, and doubles or triples them up for customers who want a bigger burger. In fact, In-N-Out stores don't even feature freezers, microwaves or heat lamps. Using only fresh food minimizes the amount of kitchen equipment necessary, reducing capital expenditures. Further, having a limited menu allows In-N-Out to rely entirely on fresh ingredients, but also allows for better forecast and extremely high inventory turnover, reducing the risk of spoilage that restaurants otherwise face. In contrast to its fast food competitors, who have achieved massive scale by relying on frozen products, In-N-Out has sustained this control and quality by ensuring that each new store is within a 500-mile radius of a patty-making facility and distribution center, which allows for quick replenishment of fresh ingredients when needed.

(a) According to this mini-case, do In-N-Out's operations represent a push, pull or a push-pull hybrid system? If a push-pull hybrid system, then where is the push-pull boundary?

(b) What levers in the OM triangle does In-N-Out mainly rely on to match supply and demand?

(c) For each of the following design strategies, explain (i) how the strategy is used in In-N-Out, (ii) how the strategies promotes the supply chain performance at In-N-Out.

• Standardization
• Postponement

(d) Comment on how In-N-Out achieves strategic fit in its operations by describing how each of its corporate value attributes is reflected in its supply chain and product design strategies.

• Quality of foods
• Fastness of service
• Reasonable prices