Evaluate whether introducing Just in Time (JIT) will be sufficient to solve the inventory problems at TK.

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. [2] Knowledge: JIT as part of lean production
2. [2] Knowledge: Lean production – aims to cut down waste during production, including inventory holding costs
3. [2] Knowledge: Enterprise Resource Planning as a possible way of managing resources and facilitating JIT.
4. [2] Application: Meals produced in batches of different dishes
5. [2] Application: Demand difficult to predict due to changes in trends, weather, media reviews
6. [2] Application: Many ingredients are perishable so limited storage time possible
7. [2] Application: HR issues, such as flexible contracts for many employees in each kitchen
8. [2] Application: Inventory problems have led to wastage/disappointed customers
9. [2] Application: Quality really important as it is TK's USP
10. [6] Analysis: As demand is difficult to predict TK may overstock certain ingredients and if demand does not emerge there will be wastage of fresh ingredients.
11. [6] Analysis: JIT will reduce stock holdings which will reduce wastage of food so reduce costs.
12. [6] Analysis: However, with JIT, if demand is not accurately predicted there may be insufficient stock to satisfy customers which may lower future sales.
13. [6] Analysis: Quality is an important USP, in terms of food, packaging and service. JIT may increase quality as food will be fresher however there is a risk that certain ingredients will not be available when required.
14. [6] Analysis: JIT will require more frequent deliveries from suppliers so strong supplier relationships become more important to guarantee deliveries on time.
15. [6] Evaluation: Judgement as to how successful JIT may be in solving inventory problems
16. [6] Evaluation: Need for all departments to work together to coordinate marketing and operations, as some inventory problems may be solved by influencing consumer demand, for instance by images on the app.
17. [6] Evaluation: Evaluation of possible limitations on change e.g.
18. [6] Evaluation: Lead times and flexibility of suppliers
19. [6] Evaluation: Depends on reliable suppliers and a good relationship with them
20. [6] Evaluation: Attitude of Thierry and directors as there is risk involved in changing to JIT
21. [6] Evaluation: Accuracy of sales forecasting
22. [6] Evaluation: Cost of training employees and/or introducing ERP
23. [6] Evaluation: Judgement as to whether JIT may be the best technique to introduce.
24. [6] Evaluation: Other evaluative comment e.g. importance of market research.