MOPO31421 Veda Dhage

All text, tables, exhibits, and Excel worksheets in this assignment were prepared on my (our) own.

Case Report: Kristen’s Cookie Company

This is the first selective case report. Below, write your answers to Questions 1-5. Your analysis should be based on the assumptions listed after the questions. If
you need to make additional assumptions to answer a question, clearly state them, logically defend them, and then proceed to answer the question accordingly.

Please format your report in the following way:

– Limit your answers to 2 pages (excluding cover page and any attachments). Use 11 pt font or larger and 1.5 line spacing. The idea is to answer the questions
concisely.

– Draw diagrams in black or gray lines on white background, because your report will be printed in black and white for grading.

– Submit one file per group. Attach all diagrams to your report, and keep this file A4 size, otherwise your report will not be printed correctly.

The case is due before our next session, (April 24nd, 8:59 am). We will discuss the answers in the session.

Please leave rest of this page blank. No answer should appear on this cover page.

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MOPO31421 Veda Dhage
All text, tables, exhibits, and Excel worksheets in this assignment were prepared on my (our) own.

1. It depends on the number of dozens in the rush order. Assume that the order requires x dozens, the time of filling that order is (16+10x) minutes. Process and time
analysis for single dozen of cookies.Washing and mixing ingredients (6min), spooning the cookies (2min), putting the cookies in the oven and setting the oven
(1min), cooling down the cookies (5min), packing them (2min), and accept the payment (1min) – will take 26 minutes.

2. a)To maximize orders to fill in 4 hours or 240 mins

Assumption = orders require dozen cookies of a same flavor. Let the number of orders we can fill to be N. So 16+10N<=240, so we get Nmax=22.
22 is max number of orders they can cover.
b) to consider minimum output each order has different flavor would be 9 as each would take 26 mins

3.Myself:Washing & mixing - 6,Spooning- 2 ; Total- 8 Roomate : Setting oven-1,Packing- 2,Payment- 1;Total- 4

4. Cost of time matters. total time for 1 dozen- 12 min,2 dozen- 17min & three dozen- 22min. It’s obvious that the cost of 2 or 3 dozen order is less than the one dozen
order. So we should give a discount for people who order more cookies.For 2 dozen order, the discount can be up to 0.068X cheaper per dozen.For 3 dozen order, the
discount can be up to 0.078X cheaper per dozen.

5.The electric mixer is usually idle and can only contain 3 dozens of ingredients, 3 trays are needed at least.

6.The mixer is usually idle. That means some time is wasted in waiting the oven’s baking job and is a bottleneck. If we rent another oven for one dozen orders:Time
of one oven:16+10×N. Time of two ovens:16+7×N. Saves three minutes than previous. If it’s a two or three dozen order, it will save more than that. So the original
profit per hour is 60/10p = 6p where p is profit per hour. The two ovens cost per dozen is: 60/7p = 8.57p So the highest price of renting an oven we can accept is 2.57p
per hour.

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MOPO31421 Veda Dhage
All text, tables, exhibits, and Excel worksheets in this assignment were prepared on my (our) own.

1.All the step have to be done by myself, time of a one dozen cookies 12, which exceeds 10 minutes, so I become the bottleneck, instead of the oven. When the order
contains 2 dozens of same flavor cookies, because the washing and mixing step of the 2 dozen cookies can be done together, my valuable time for this order becomes
17min, less than 10×2=20min. If the order requires 3 dozens, my valuable time becomes 22min.

2.The time that rush order will delay is at most 1 minute, so need to stop baking; And the previous order will finish on time.

3.The time I become idle,plus 26 minutes. At that time we can promise delivery.The safety margin for timing is 8 minutes(6+2) for a rush order. Assume that you just
begin the wash process and then a rush order comes, you have to stop it and do the rush order.

4.The factors that I should consider at the stage of planning my business are:
Cost: cheap raw materials of good quality
Human capital: assess required labour
Product: how to design better cookies and optimize process
Services: can I provide some other services, for example, deliver cookies to the customers’ dormitory?

5. The value of my product is the fresh and tailored to your liking cookies at a reasonable price.If we sell standard cookies, we can bake the cookies before receiving
the order. And the order-taking process also needs to change. The consumers don’t need to place in their orders virtually and wait for pickup. They can come to my
apartment directly to buy it. If someone needs a large sum of cookies, they need to pre-order.

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MOPO31421 Veda Dhage
All text, tables, exhibits, and Excel worksheets in this assignment were prepared on my (our) own.