Question

In: Accounting

Burger King is a fast food restaurant that were in Indonesia in the 1990s re-emerged in...

Burger King is a fast food restaurant that were in Indonesia in the 1990s re-emerged in the country's culinary market. The retail company, PT Mitra Adiperkasa Tbk (MAP) is now the largest fast food restaurant licensee in the US and their competitor is McDonald. MAP added a new subsidiary on behalf of PT Sari Burger Indonesia to manage Burger King. MAP opened Burger King outlets in mid-2007. In their website, Burger King state that :

Every day, more than 11 million guests visit BURGER KING restaurants around the world. And they do so because our restaurants are known for serving high-quality, great-tasting, and affordable food. Founded in 1954, BURGER KING is the second largest fast food hamburger chain in the world. The original HOME OF THE WHOPPER, our commitment to premium ingredients, signature recipes, and family-friendly dining experiences is what has defined our brand for more than 50 succesful years.

Their ingredients for their Whopper are bun, tomatoes, onions, pickles, tomato sauce, lettuce, gilled meat, and mayo sauce.

QUESTIONS :
a. Could there any spoilage, rework, and scrap first and then relate them to The Whopper.

b. As a consultant, can you give them your advice about minimizing their spoilage, rework, and scrap.

Solutions

Expert Solution

a). Yes, There is spoilage, rework and scrap based on their ingredients. All goods are perisable in nature Bun ( 1-2 Days), grilled meat ( 1-2 days) and other sauce packages are can be kept for longer period before their expiration.

On the above facts stated:

1. Spoilage :   Life of Bun is generally or maximum 1-2 days only, spoilage will be there if stored more than that. As although same will not be showed to customers, but being doing business ethical need to be destroyed accordingly or given as feed to cattles nearby.

2. Rework:: Rework will happen where order of Veg is taken as Non Veg and sauce are not added as per order of the customer.

3. Scrap: Veggies Unwanted or peeled off particles. Grilled meat little cut peices for making into as per standard size. etc.

b). Being Consultant following measures can be taken

- Analyse the trend and customer orders in the form of Veg and Non Veg per month no of customers per month visit and their choices. maintain stock 10% above the customer order as estimated.

- Use FIFO method: First In First Outmethof for consumption will save company cost.

- Storage Machine to be monitored properly as changes in temperature may impact the material kept in their.

- Meat to be monitored separately and Same method FIFO will be applied.

- All though spoilage expected to be minimal but in case it happens , same will be discharged to the cattle as a feed specially veggies parts.


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