Brunch Bakery Brunch Bakery is a trendy sandwich shop in the centre of Amsterdam. They have a
Question:
Brunch Bakery Brunch Bakery is a trendy sandwich shop in the centre of Amsterdam. They have a special concept in which they offer two types of sandwiches, but each with different flavours and other ingredients on it. The two types are called Morning Star and Rise and Shine. The latter consists of more exclusive ingredients. The Morning Star has a selling price of €3 and Rise and Shine sells at €5 each. Variable costs are €2 and €3.60 respectively. All sandwiches used are home made by Brunch Bakery. The process of making the sandwiches, consists of three steps, namely ‘preparation’ (kneading the dough), ‘baking’ and ‘finishing’ (slicing bread and topping sandwiches). The production time for each production step and the maximum available time are indicated in the table below:
Required:
1. Define the optimal production plan for Brunch Bakery, maximising profitability.
2. Suppose Brunch Bakery wants to expand production. In which production process should they invest first?
3. Brunch Bakery has called in additional personnel and this has increased the time for Finishing from 600 to 700 hours. What is the optimal production plan? The Bakery does not produce nor sell parts of sandwiches.
Step by Step Answer: