The customer resists the impulse to try out rival brands till he is deriving maximum satisfaction from the brand in question.

There is no chance of offering stale food to the customer. Higher customer satisfaction leads to customer retention and increased sales. Improved quality of food: The burgers are made fresh for the customer and thus provide maximum satisfaction.Higher customer satisfaction and reduced costs But it has also lead to a huge decrease in costs for McDonalds and this is what has made JIT system such a success. The customer is made to wait for a very short period and this is a huge factor while going for such a system of inventory management. This results in the finished product sitting in the inventory for as little as possible. This enables proper inventory management and reduces wastage while giving maximum satisfaction to the customer.

This shift was possible because of the new burger making technology that enabled them to make burgers faster and keep the time between placing an order and receiving it as miniscule as possible. Hence McDonalds moved to the JIT system of inventory management. The only way it could happen was by the customer giving a special order. Hence customers couldn’t enjoy freshly made food. They had a different approach to inventory management wherein they used to pre-cook a batch of hamburgers and sit under heat lamps. It used to keep them under the lamps for as long as possible and eventually discard whatever they couldn’t sell.

Just in time inventory restaurant