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Michael would like to open a new burger restaurant - HSC - SSCE Business Studies - Question 21 - 2022 - Paper 1
Question 21
Michael would like to open a new burger restaurant. (a) Outline a performance objective relevant to this business. (b) Recommend an appropriate inventory managemen... show full transcript
Worked Solution & Example Answer:Michael would like to open a new burger restaurant - HSC - SSCE Business Studies - Question 21 - 2022 - Paper 1
Step 1
Outline a performance objective relevant to this business.
Answer
A key performance objective for this burger restaurant could be 'dependability'. This means ensuring that customers receive their orders consistently in terms of quality, size, temperature, and taste. Customers expect their burgers to be served within a certain timeframe, so prioritizing dependability is crucial to gaining customer trust and loyalty.
Step 2
Recommend an appropriate inventory management strategy for this business.
Answer
An appropriate inventory management strategy for the burger restaurant could be 'just-in-time (JIT) inventory'. This approach minimizes holding costs by ordering ingredients only as needed for food preparation. Utilizing JIT helps reduce waste and ensures that fresh ingredients are always available, which is vital for food quality in the restaurant business.
Step 3
Compare each layout in terms of efficiency and profitability.
Answer
In Process Layout Option 1, the design facilitates a clear flow from raw materials to finished products, but it may lead to longer customer wait times due to the distance between the assembly station and cash registers.
In comparison, Process Layout Option 2 allows for a more direct flow, which could enhance efficiency as servers can quickly access finished burgers and customers can make purchases promptly. However, if too much emphasis is placed on speed, it may affect dependability, leading to inconsistencies in order quality. Therefore, evaluating the trade-offs between efficiency and quality is essential to determine the most profitable layout.