Harbour Café currently uses a just in case (JIC) approach for key ingredients: it keeps a large storeroom inventory of bread rolls, salad items, and packaged meats to avoid running out during busy periods.
The owner is considering switching to a just in time (JIT) approach:
- deliveries of bread and salad would arrive twice daily
- packaged meats would be delivered every morning
- the café would keep only a small buffer stock for unexpected demand
Recent issues have raised concerns:
- the café has had spoilage of salad items when demand is low
- a local road closure sometimes delays deliveries
- storage space is limited, and the storeroom could be converted into seating
A summary of the café’s current weekly figures is shown below.
| Item | Average units used per week | Cost per unit | Shelf life once delivered | Weekly waste under current system |
|---|
| Bread rolls | 700 | $0.30 | 2 days | 40 rolls |
| Salad packs | 220 | $1.10 | 3 days | 25 packs |
| Packaged meats | 160 | $2.40 | 7 days | 5 packs |