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Question 5
Figure 2 shows a bar gate stock graph which details the delivery of chicken portions to KFC’s Exmouth restaurant during February 2018. During this time it received t... show full transcript
Step 1
Answer
To calculate the size of order A, I will examine the graph in Figure 2. Order A corresponds to the delivery made when stock reached a low point. The stock level before the delivery was approximately 300 portions, and after the order, it reached around 1,300 portions.
Thus, the size of order A can be calculated as:
Therefore, the size of order A is 1,000 portions.
Step 2
Answer
To find the number of days KFC ran out of chicken, I will analyze the period during which the stock reached zero. According to Figure 2, the restaurant ran out of chicken starting from Day 26 until Day 22.
Thus, the calculation of the number of days is:
Therefore, KFC ran out of chicken for 4 days.
Step 3
Answer
Poor supplier reliability can significantly affect KFC's operational efficiency and customer satisfaction. Here are some key points of analysis:
Stock Shortages: If KFC cannot rely on its suppliers to deliver chicken on time, it risks running out of key menu items, leading to potential loss of sales during peak times such as Saturday lunchtimes.
Menu Restrictions: In situations of supply inconsistencies, KFC may have to limit its menu offerings, which could deter customers who expect their favorite items, like boneless boxes.
Customer Dissatisfaction: When KFC fails to meet consumer expectations or needs, customers may turn to competitors like Burger King, resulting in a decline in customer loyalty.
Revenue Loss: Frequent disruptions in supply could impact KFC’s overall revenue, as customer traffic may decline if potential patrons find their desired meals unavailable.
Operational Inefficiencies: Staff members may be underutilized when key ingredients are missing, reducing productivity and overall effectiveness.
Reputation Damage: Long-term reliability issues can tarnish KFC’s brand reputation, making it difficult to regain consumer trust.
In conclusion, maintaining consistent supply chain management is essential for KFC to ensure customer satisfaction and business profitability.
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