# Case Study Kristen's Cookie Company

Key Questions

1)

Washing & Mixing | 6 min|

Dishing Up | 2 min|

Setting the oven| 1 min|

Baking| 9 min|

Cooling | 5 min|

Packing| 2 min|

Accept Payment| 1 min|

Total| 26 min|

2) The oven holds only one tray (one dozen of cookies) => at full utilization we can cook only 6 dozen of cookies per hour, for example after washing and mixing we have two more minutes to wait before oven will free. 26 + 10(x-1)=240

X=22.4

22 orders per night

3)

My own| Roommate|

Washing & Mixing 6 min| Setting the oven 1 min|

Dishing Up 2 min| Packing 2 min|

| Accepting Payments 1 min|

8 min| 4 min|

4) Our variable costs are only ingredients (.60 per dozen) and boxes (.10 per dozen), no fix costs, because we don’t pay for electricity Time consume

To produce 1 dozen we need 12 minutes (8+4), two dozen in same time 17 minutes (8.5 per 1 dozen), 3 dozen 22 minutes (7 min 20 seconds per one dozen) Our working time decrease, when we produce 2 or 3 dozen, => we can give discount The price of discount depends on how much we assess our time 5) Capacity of food processor is 10 dozen per hour, but oven’s capacity is only 6 dozen=> there is no need to buy one more food processor. We use tray, when we dishing cookies onto tray till packing. It takes 19 minutes. But if we decide to prepare 2 dozen, we need one more tray.

6) According to the answer #2 , we can see that during the process, the oven almost keep working all the time while electric mixer has a lot of time to being idle. That means some time is wasted in waiting the oven’s baking job and this is obviously a bottle neck. If we rent another oven for one dozen orders: time of one oven: 16 + 10X

time of two ovens: 16 + 7X

so for each order it saves three minutes than previous. If it’s a two or three dozen order, it will save more than that. Assume our profit per dozen is P and considering the one dozen orders. So the...

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