Tim Horton's Case Analysis For Operation Management

Essay by rolaht May 2004

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(Executive summary):

Tim Horton's one of North America's largest coffee and fresh baked goods chains. Today, Tim Horton's has more than 2,200 stores across Canada and a steadily growing base of 160 locations in key markets within the United States. Our project is focus on the Inventory management of Tim Horton's which located in Bay Shore, 2970 Carling Ave. Inventory Management is the practice of planning, directing and controlling inventory so that it contributes to the business' profitability. Inventory management can help business be more profitable by lowering their cost of goods sold and/or by increasing sales.

Tim Horton's franchise restaurants deal with three suppliers. The first supplier is the Main Company. It supply its branches all the hardware that doesn't go to fridges. The second supplier is Nelson, supply them by milk, cream, and cream cheese. The last one is Sis co, Provide the 25 kind of daunts, muffin, and bread.

This branch has 32 employees and number of customer are more than 2000 persons depend on the day of the week, demand increase in Saturdays and Sundays. Also demand increases by the season. More demand for coffee and hot chocolate during the winter. However the demand for these items will be less during the summer. Also, more demand for iced Cappuccino in summer than winter. Number of daily transactions is from 15-16 hundred a day and cost of items is fixed. They use just in time system, thus they use borrowing method in case a big unexpected order or other reasons or they can make a quick order. The ordering inventory and receiving time take 24- 26 hours. Also, they use inventory back up and keep excess inventory against stock-out.

Existing Process:

Many Tim Horton's franchised restaurants (including the branch on Baseline/Carling, in Ottawa) use periodic inventory...