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

  Investment to help increase the productivity

Evaluate whether or not this is a valid and worthwhile investment to help increase the productivity within an organization. Describe your personal experience(s) with just-in-time learning

  Identify one each who fits a supportive style

Think back to teachers you have had, and identify one each who fits a supportive style, directive style, participative style,

  Compute annual inventory carrying cost

Kathmandu Products orders materials from its suppliers 12 times per year, at a re-ordering costs of $250 (per order). The company's average inventory is valued at $700,000.

  Explain in detail how two other factors specific

explain in detail how two other factors specific to this company might make it difficult to evaluate the financial impact of this strategy.

  Elucidate how does technology transform information in p-om

There is no length requirement for these questions. Elucidate how does technology transform information in P/OM. Does technology play a role in job design.

  Describes the whole research process

Discuss how the research questions and hypothesis are developed. Describe the null and alternative hypothesis and how they support the research effort. Describe how the research effort will be measured and analyzed.

  How project management skills transferable across industries

Explain how project management knowledge and skills can be transferable across industries and professions

  Illustrate what is the forecast for december

Assume a multiplicative decomposition model. If the expected trend for December is $900, also the median seasonal adjustment is used; illustrate what is the forecast for December.

  How leader can recognize regressive cycle

Describe briefly how a leader can recognize a regressive cycle and what should the leader's response be?  Hatten (2009) stated, because inventory is such a significant expense, most businesses look carefully for ways to determine the appropriate leve..

  Establish the foundational areas for growth potential

You may use the format you choose (Word, Excel, Visio, Project). Please support your work through use of a minimum of 3 sources using APA format. The paper should be 3-5 pages.

  Perspective on the many management initiatives implemented

What is your perspective on the many management initiatives implemented by Semler? Reference/cited.

  Calculate the cash ratio

Slighty Used Goods has Cash of $2,150 inventory of $28,470, fixed assets of $9,860, accounts payable of $11,900, and account receivable of $4,660.

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