Answer to Question #156862 in Economics for Arshad

Question

1. What approach(es) does McDonald’s seem to take for its capacity management to reconcile capacity and demand?

2. Analyse the implementation of the four Ds by the McDonald’s restaurants?

3. Evaluate what the five performance objectives mean for the operation in McDonald’s?

4. At the Dorchester McDonald’s branch, cars arrive at the Drive-Thru at a rate of 25 per hour and only one drive-thru till is open. The average time it takes for an order and collection is 5 minutes. Assuming that the interarrival time and the service time are both exponentially distributed. Calculate the average number of customers arriving at the till and the average time they must wait before exiting McDonald’s Drive-Thru. You are encouraged to use calculations to prove any challenges if there is any and suggest any solutions, based on the calculations.

Answer 1

McDonald's plans employment and production without distributing demand for all types of products offered; they focus on aggregate demand and the aggregate output they can provide. At the same time, planning is carried out on the basis of an analysis of statistical data for individual regions.

Digital technology, delivery, and other network strengths leveraging competitive advantages and creating a powerful digital experience growth engine that provides fast and easy service to fast-food chain customers.

Cost is an important aspect of any business that strives for competitive prices. Some organizations lose money by paying employees, buying tools and equipment, and providing services that minimize their bottom line. McDonald's has mastered the art of minimizing its operating costs. This way, they can sell their food for much cheaper than their competitors. Food quality is one of McDonald's top priorities. The company has developed policies and procedures to ensure that all of its divisions meet high-quality standards.

Speed ​​is the time it takes for buyers to deliver their goods or services. McDonald's is committed to reducing wait times to 95 seconds.

$$y=(\frac {25}{12})^x$$

The average number of cars at the checkout is 2.

Waiting time 4.3 minutes.