How much does mcdonalds save in inventory cost

Assignment Help Operation Management
Reference no: EM13225381

The following figures are taken from the 2003 financial statements of McDonald's and Wendy's. Figures are in million dollars.
McDonalds Wendy's
Inventory $129.4 $54.4
Revenue 17140.5 3148.9
Cost of Goods Sold 11943.7 1634.6
Gross Profit 5196.8 1514.4
a. In 2003, what were McDonald's inventory turns? What were Wendy's turns?
b. Suppose it costs both McDonald's and Wendy's $3 (COGS) per their value meal offerings, each sold at the same price of $4. Assume that the cost of inventory for both companies is 30 percent a year. Approximately how much does McDonalds save in inventory cost per value meal compared to that of Wendy's? You may assume the inventory turns are independent of the price.
What is the answer for b?

Reference no: EM13225381

Questions Cloud

How does the innovative use of color in impressionistic : How does the innovative use of color in Impressionistic painting translate into sound?
What is mac os xs present day file system : 8. What is Mac OS X's present day file system A) Macintosh Filing System (MFS) B) Hierarchical Filing System (HFS) C) Hierarchical Filing System Extended (HFS+) D) Extended File System (EXT) Th..
How is the star represented in photographs : What sort of picture would you form of the star in just one of these publications, as opposed to the full combination?
Which strategic training and development initiatives : Which strategic training and development initiatives do you think all companies should support regardless of economic conditions? Why?
How much does mcdonalds save in inventory cost : Approximately how much does McDonalds save in inventory cost per value meal compared to that of Wendy's? You may assume the inventory turns are independent of the price.
Need an php script that redirect the visitor to url : Need an php script that redirect the visitor to url or dir based on their ip address if the visitor from Germany -
How to generate odd parity over the individual words : Design a system using either a flow diagram or pseudo code that will accept a block of data words encoded as specified in Part 1; then check the parity for each data word and for the block. The system should output each of the 8-bit data words.
Effects of homelessness : What are some of the pros and cons of being homeless as well as the reasons for and also the effects of homelessness?
Find the voltage at coil 2 and the flux through coil 1 : Two coupled coils have self-inductances L1 = 50 mH and L2 = 200 mH, and a coefficient of coupling k = 0.5. If coil 2 has 1000 turns, and I1 = 5Sin (400t) (i.e. the phasor current is 5? -90° A). Find the voltage at coil 2 and the flux through coil ..

Reviews

Write a Review

Operation Management Questions & Answers

  A firm plans to begin production of a new small appliance

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor for $9 each or to produce them in-house

  How many tubs should circulate between the sorting clerks

When the clears are ready to process another tub of mail, they will pull the tub from the canceling machine area. How many tubs should circulate between the sorting clerks and the cancleing machine if 90,000 letters are to be sorted during an 8-ho..

  Explain how will bunny wac structure likely need to change

Explain how will Bunny wac's structure likely need to change if it does begin developing its core battery technologies in-house.

  Limitations of materials requirement planning

Assuming that the current turnover and profits of both the units are comparable, compare the relative benefits and limitations of Materials Requirement Planning (MRP) for these two businesses

  Describe the switching costs

Pick a company. Describe the switching costs that the company would incur if it began to phase out its current suppliers and pick new suppliers. How would you suggest this company reduce its switching costs? Explain with an example.

  Calculate ways to save expenses for jva corp

Depend on the prices which have been computed, a net savings should be evident to allow for major or minor price savings for JVA Corp.

  Illustrate what is efficiency of line balanced

Illustrate what is efficiency of line balanced as in d. Suppose which demand rose from 750 to 800 units per day. Illustrate what would you do? Show any amounts or calculations.

  Discuss factors about the corporate culture

Discuss factors about the corporate culture that were at play, and suggest central reasons why the executive staff waited as long as they had to consider the development of an enterprise project management methodology (EPM).

  What is the average and the standard deviation

What is the average and the standard deviation of demand during the protection interval?

  How to calculate projected cost of goods sold

How to calculate projected cost of goods sold while trying to reduce inventory levels.

  Detailed explanation to marketing research

Suppose you were conducting the marketing research study for your company. Which of following factors: cost, culture, time, or geography, would have the greatest affect on your research? Why?

  How much time on social media is reasonable at work

How much time on social media is reasonable at work before it becomes time wasting or a theft of the employer's time? Does your answer depend on whether the employee has met his or her goals? Does it depend on how many hours he or she has worked?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd