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Essay / Mcdonald's Sustainable Supply Chain
Table of ContentsSustainable Supply Chain VisionMcDonalds ForecastingCausal FactorsQualitative ForecastingInventory Control ChartsData EntryBuffer StockOrdersThe McDonald's supply chain is a complex network of direct and indirect suppliers. They manage this complex system by working with direct suppliers who share their values and vision of sustainable sourcing. They require them to meet clear standards for quality, safety, efficiency and sustainability. They expect them to extend these requirements to their suppliers and also partner with them to identify, understand and address industry-wide sustainability challenges and achieve continuous improvement. Overall, McDonald's and its suppliers collectively focus on three areas of responsibility: ethics, environment and economy. Their supply chain focus areas include: Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayCommitment to sustainable land managementAnimal welfareSupplier responsibility in the workplaceSustainable fishingSustainable supply chain visionThey are considering a supply chain that profitably produces safe, high-quality products without interruption in supply while leveraging their leadership position to create a net advantage by improving ethical, environmental and economic outcomes. Ethics – They consider to purchase from suppliers who follow practices that ensure the health and safety of their employees as well as the welfare and humane treatment of animals in their supply chain. Environment - They plan to influence the supply of materials and ensure the design of products, their manufacturing, their distribution and their use in order to minimize the impacts of the life cycle on the environment. Economics – They plan to provide affordable food, engage in fair trade practices, limit the spread of agricultural diseases, and positively impact the communities where their suppliers operate. They see this vision and their responsibilities holistically. When making sourcing decisions, they consider their food safety, quality and cost priorities, as well as their ethical, environmental and economic responsibilities. Their global progress in beef and coffee sustainability illustratesMcDonalds ForecastingForecasting at McDonald's A forecast is an estimate of future sales of finished products. Forecasts are calculated using: · historical store-specific product mix data from the past two years · store-specific and national causal factors. These specify the dates of events such as national promotions and school holidays. · Insights from store managers on factors that may affect demand, for example road closures or local events and promotions. Causal Factors Supply planners working for McDonald's include a series of causal factors in the calculation of the forecast, so that, based on past performance, they can predict future demand for each restaurant. For example, Big Mac sales increase during a “Buy One, Get One Free (BOGOF)” promotion. Planners use this data in forecasts for all stores that participated in this promotion. The analysis of how the.