Wendy’s and DoorDash

Wendy’s and DoorDash

December 28, 2017

Article Title: Wendy’s will deliver your next Baconator through DoorDash

Author of Article: Mallory Locklear

Date of article: December 1, 2017

Source URL: https://www.engadget.com/2017/12/01/wendys-deliver-baconator-doordash/

Wendy’s has partnered with DoorDash to deliver food to customers’ homes, taking advantage of the trend for restaurants to add delivery to their offerings.

By partnering with DoorDash, Wendy is better able to compete with other fast food restaurants like Taco Bell, KFC, and McDonald’s as more and more fast food customers prefer having food delivered to their house in new ways using drones, self-driving cars, and robots.

Discussion Questions
1. What are the challenges of operating a fast food restaurant?

Guidance: Discussion may focus on speed of delivery, labor intensiveness, capital intensiveness, and demand fluctuation.

2. How does Wendy’s partnership with DoorDash meet the challenges of operating a fast food restaurant?

Guidance:  Two key benefits: lower overhead and faster delivery by partnering with DoorDash to operate as a “virtual” restaurant

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Saline bags, stat!

Saline bags, stat!

Article Title: U.S. Hospitals Face a Shortage of This Most Basic Necessity

Author of Article: R. Langreth and C. Koons

Date of article: November 14, 2017

Source URL: https://www.bloomberg.com/news/articles/2017-11-14/this-simple-lifesaving-liquid-is-suddenly-in-short-supply

This BusinessWeek article describes the shortage of small saline-solution bags for hospitals across the country.

A limited number of suppliers, quality problems, legal probes into possible price-fixing, and the destruction of factories by Hurricane Maria have contributed to a dangerously short supply of the bags which are used to administer hundreds of different medicines. Inventory levels of many essential drugs are also very low, making it difficult to respond to sudden disasters.

To cope with these problems, hospitals are trying to change the drug delivery system from injectables to alternatives. However, this process is complicated because it involves a redesign of the workflows.

Discussion Questions
1. When there is uncertainty in lead times, organizations carry higher levels of safety stock. Is it an option here?

Guidance: Discuss the limited supply of bags in the country and the perishability of injectable drugs. Both make it impossible to order large quantities and keep high levels of safety stock. Moreover, “hoarding” drugs in short supply compounds the problem. Discuss the Continue reading

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