Kristen's Cookie Company
1. How long will it take you to fill a rush order?
• Order Size 1 Dozen: 6 + 2 + 1 + 9 + 5 + 2 + 1 = 26 minutes
• Order Size 2 Dozen: 26 + 1 + 9 = 36 minutes
• Order Size 3 Dozen: 36 + 1 + 9 = 46 minutes
2. How many orders can you fill in a night, assuming that you are open four hours each night?
• 4 hours = 240 minutes
• Bottleneck is the oven (setting and baking), which takes 10 minutes
• Must account for the 8 minutes required to prepare prior to baking (wash/mix/spoon) the first batch
• Must account for the 8 minutes required to complete (cooling/accept payment/packaging) the final batch
• 240 – 8 – 8 = 224 minutes available for bottleneck usage
• Each order is 1 Dozen
i. Each order requires 1 instance of bottleneck resource: 10 minutes cycle time ii. 224 ÷ 10 = 22.4 ≈ 22 orders iii. 22 orders = 22 dozen
• Each order is 2 Dozen
i. Each order requires 2 instances of bottleneck resource: 20 minutes cycle time ii. 224 ÷ 20 = 11.2 ≈ 11 orders iii. 11 orders = 22 dozen
• Each order is 3 Dozen
i. Each order requires 3 instance of bottleneck resource: 30 minutes cycle time ii. 224 ÷ 30 = 7.47 ≈ 7 orders iii. 7 orders = 21 dozen
3. How much of your own and your roommate’s valuable time will it take to fill each order?
• Kristen: 8 minutes (prepare/spoon)
• Roommate: 4 minutes (turn on oven/packaging/accept payment)
4. Because your baking trays hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give discount for people who order two dozen cookies, three dozen cookies, or more? If so, how much? Will it take you longer to fill a two-dozen cookie order than a one-dozen cookie order?
• Discounts would be based on labor costs, not raw material cost since the case did not indicate that there are volume discounts for ingredient purchases
• There are no overhead costs – utilities are covered by landlord
• Assuming each cookie order (whether 1, 2 or 3 dozen) is for the same type of cookie:
i. 1 Dozen
•
• Order Size 1 Dozen: 6 + 2 + 1 + 9 + 5 + 2 + 1 = 26 minutes
• Order Size 2 Dozen: 26 + 1 + 9 = 36 minutes
• Order Size 3 Dozen: 36 + 1 + 9 = 46 minutes
2. How many orders can you fill in a night, assuming that you are open four hours each night?
• 4 hours = 240 minutes
• Bottleneck is the oven (setting and baking), which takes 10 minutes
• Must account for the 8 minutes required to prepare prior to baking (wash/mix/spoon) the first batch
• Must account for the 8 minutes required to complete (cooling/accept payment/packaging) the final batch
• 240 – 8 – 8 = 224 minutes available for bottleneck usage
• Each order is 1 Dozen
i. Each order requires 1 instance of bottleneck resource: 10 minutes cycle time ii. 224 ÷ 10 = 22.4 ≈ 22 orders iii. 22 orders = 22 dozen
• Each order is 2 Dozen
i. Each order requires 2 instances of bottleneck resource: 20 minutes cycle time ii. 224 ÷ 20 = 11.2 ≈ 11 orders iii. 11 orders = 22 dozen
• Each order is 3 Dozen
i. Each order requires 3 instance of bottleneck resource: 30 minutes cycle time ii. 224 ÷ 30 = 7.47 ≈ 7 orders iii. 7 orders = 21 dozen
3. How much of your own and your roommate’s valuable time will it take to fill each order?
• Kristen: 8 minutes (prepare/spoon)
• Roommate: 4 minutes (turn on oven/packaging/accept payment)
4. Because your baking trays hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give discount for people who order two dozen cookies, three dozen cookies, or more? If so, how much? Will it take you longer to fill a two-dozen cookie order than a one-dozen cookie order?
• Discounts would be based on labor costs, not raw material cost since the case did not indicate that there are volume discounts for ingredient purchases
• There are no overhead costs – utilities are covered by landlord
• Assuming each cookie order (whether 1, 2 or 3 dozen) is for the same type of cookie:
i. 1 Dozen
•