251620073 Copper Kettle Catering 2

COPPER KETTLE
CATERING

Question 1.
Are the operations of Cooper Kettle Catering conducive to the application of JIT concepts and practices?
The Williams’ can efficiently manage the deliver-only process by

Purchase Automated Machines to prepare food & Box meals - Staff reduces
Automated
Machines to prepare food & Box meals - Staff reduces
Purchase
1 food preparation employee working the machines, food preparation employee working the machines,

2 1cooks
2 cooks
Substantially Increase Savings
Increase
Savings
Substantially
Drastically lower annual labor costs

Drastically lower annual labor costs
Decrease inventory
Decrease
inventory

Increase profits and market-share in the long-run
Increase profits and market-share in the long-run
Overall demand for delivery-only is fairly constant throughout the year - absorb any schedule changes demand for delivery-only fairly constant Overall
More inventory/ capacity slack dueis to a lean systemthroughout the year - absorb any schedule changes
More inventory/ capacity slack due to a lean system
Collaborating with reliable suppliers
Collaborating
Better quality with reliable suppliers
Better
quality

More future customers
More future customers

Question 2. What, if any, are the major barriers to implementing a JIT system at
Copper Kettle Catering ?
• Reliability of Supply - Reliability is low due to the nature of the items that are supplied.
• Location of CKC’s vendors – Majority of the vendors may have their farms in faraway from the where CKC is located.
• Incoterms – CKC’s vendors operate under different Incoterms
• Flexibility of the Supply – it might not be economical to supply or purchase small quantities as and when required. Cost may go up.