Question

BurgerMan and Jeffrey’s are fast food chains providing similar items. BurgerMan offers food from a standard menu, while Jeffrey’s positions itself as providing more customized products. Consider two franchises, one of each chain. You have just conducted an analysis of the two franchises, and your conclusion is that both places have similar capacities and average demand. You also find out that in BurgerMan standard hamburgers are prepared and stored in a holding bin while there is no finished good inventory held in Jeffery’s. Which store is more likely using the manufacturing strategy "Make-to-Stock". and why?

Answer 1

Answer:

BurgerMan is using the manufacturing strategy "Make-to-Stock".

Explanation:

From analysis of the two franchises, BurgerMan standard hamburgers are prepared and stored in a holding bin while there is no finished good inventory held in Jeffery’s fast food.

Answer 2

Answer:

The correct answer is: BurgerMan.

Explanation:

The Make-to-Stock manufacturing inventory is implemented by businesses based on historical sales. The company produces goods to keep them stored to satisfy the demand of consumers before they actually place orders for the products. This inventory strategy implies higher warehouse costs and needs the sales forecast to be accurate otherwise the business will fall into a surplus.

Therefore, as BurgerMan's standard hamburgers are stored in a holding bin, it must be following a make-to-stock manufacturing inventory.