Food Cookies Case Study

1.How long will it take to fill a rush order?

Assuming that you only have one order and one order is one dozen:

Process: Resources: Process Time:

Washing and mixing Email 6 min

Filling Tray Self 2 min

Preparing oven Roommate 1 min

Baking Oven 9 min

Removing the tray Roommate 0 min

Cooling None 5 min

Packaging/Collect Money Roommate 3 min

Total minutes it requires to fill a rush order 26 minutes.

2.How many orders can you fill a night, assuming you are open four hours each night?

The first order of cookies would take the longest and the second dozen won’t take as long as the first. One roommate could get the tray ready for order two while the first order is in the oven baking. Each dozen of cookies the company will need 26 minutes, and for each additional dozen the

Labor Cost per hour Labor cost Labor Cost per Dozen Cost Savings % Savings

1 Dozen 12 $ 10.00 $ 2.00 $ 2.00

2 Dozen 17 $ 10.00 $ 2.83 $ 1.42 $ 0.71 35%

3 Dozen 22 $ 10.00 $ 3.67 $ 1.22 $ 0.78 39%

The company could afford to give a discount for two dozen and three dozen. Overall, a discount can be given to people who order the 2nd and 3rd dozen of the multiple of 3. Meaning, on two and three down a discount can be applied, however not on the fourth dozen. But on the fifth and sixth down a discount be applied. On the 2nd dozen a discount can be up to 35%, and on the 3rd dozen the discount can be up to 39%.

5.How many food processors and baking trays will you need?

The food processor is only used in the mixing stage, which is not used for long periods of time. The real bottleneck is the oven. Buying another food processor won’t improve the productivity of the system at