Reference no: EM132232792

Dawn Sharp is the owner of Sharp’s Sandwich Shop. Her shop is open 24/7 and serves many different types of sandwiches, from classic breakfast sandwiches to more exotic burgers and other sandwiches usually consumed at lunch and dinner. Recently, Dawn addressed inventory management as one of her major production issues. Dawn’s goal is to give her customers quick service and a quality product. As Dawn evaluated her inventory problem that was related to the premade sandwich system, she discovered a parallel issue – quality. As part of her revised inventory system, all sandwiches placed in the charity bin are recorded in a waste log. This process enables Dawn to reconcile the “waste” sent to the charity bin to actual waste, i.e., items that are thrown in the trash. Previously, Ms. Sharp had assumed that a significant quantity of her overall waste (95%) were items placed in the charity bin. However, as she compared her numbers, Dawn discovered that more was going into the trash than she thought.

Currently, Ms. Sharp is evaluating the quality of the food by the waste, meaning as the cost of waste increases she senses that the quality of the product is decreasing. Recommend to Ms. Sharp a better method to evaluate quality then just cost.