Kristen Cookies case
1 Dozen Order 2 Dozen order 3 Dozen order Q 1 Washing and Mixing 6 6 6 Spooning 2 2 2 Baking Prepration 1 2 3 Baking 9 18 27 Cooling 5 5 5 Packing 2 2 2 Accepting Payment 1 1 1 Total time 26 36 46 Q 2 Assumtion: Process is NOT in the steady state. =INT((240-D16-D17)/(D18+D19)) =INT((240-E16-E17)/(E18+E19)) =INT((240-F16-F17)/(F18+F19)) Number of Orders 23 11 7 Assumtion: Process is in the steady state. =240/(D15+D16) =240/(E15+E16) =240/(F15+F16) Number of Orders 24 12 8 Q 3 Working time per order =D16+D17 =E16+E18 =F16+F19 Mine 8 10 12 =D18+D21+D22 =E18+(2*E21)+E22 =F18+(3*F21)+F22 My roommate's 4 7 10 Q 4 Labor Cost per order $2.00 $2.83 $3.67 Material cost (ingredients&box) per order $0.70 $1.40 $2.10 Total variable costper order $2.70 $4.23 $5.77 Overhead $0.27 $0.42 $0.58 Total cost per order $2.97 $4.66 $6.34 cost reduction of ordering more than 1dz 22% 29% discount for ordering more than 1 dz less than 22% less than 29% Q 5 2 trays for all the different orders. Because the bottle neck is baking operation which takes 10 minutes. Therefore to prevent any delay in that operation we need to make a second tray ready waiting for entering the oven. As the first tray gets empty and refilled before finishing oven's operation, there is no need for extra trays.
Q 6 The bottle neck is oven. In this case, the electricity bill is not on us so adding another oven can reduce the cycle time and improve the process capacity. But, since the current demand is being fulfilled by 1 oven, there is no need to add another oven. When our demand is 20 dozen cookies per day, there is not need to add a second oven, so it would not be worthwhile to pay any additional rent.
Q 6 The bottle neck is oven. In this case, the electricity bill is not on us so adding another oven can reduce the cycle time and improve the process capacity. But, since the current demand is being fulfilled by 1 oven, there is no need to add another oven. When our demand is 20 dozen cookies per day, there is not need to add a second oven, so it would not be worthwhile to pay any additional rent.