$1$

$.$

$$Which business strategy is Kristin Cookie Company using?

$2$

$.$

$$How long will it take to fill a rush order for

$$

one dozen cookies

$$

$,$

$$assuming that no other cookies are currently in process? Assuming empty system.

$3$

$.$

$$What is the capacity of the process? Flow unit

$=$

$1$

$$dozen cookies.

$4$

$.$

$$Which resource is the bottleneck? Flow unit

$=$

$1$

$$dozen cookies.

$5$

$.$

$$How many orders of

$$

one dozen cookies

$$

$$can you fill in a night, assuming you are open

$4$

$$hrs

$.$

$$each night?

$6$

$.$

$$What is the impact of increasing cooling time from

$5$

$$min to

$1$

$0$

$$min on process capacity and flow time?

$7$

$.$

$$How much labor time are you and your roommate going to devote to these production steps in each cycle? Flow unit

$=$

$$one dozen cookies

$8$

$.$

$$How much idle time do you and your roommate have in each cycle? Flow unit

$=$

$$one dozen cookies

$9$

$.$

$$What is the material cost for making one dozen cookies in an order? Flow unit

$=$

$$one dozen cookies

$1$

$0$

$.$

$$What is the labor cost for making one dozen cookies in an order? Assume $

$1$

$2$

$$per hour and you pay for only productive time and not idle time. We are assuming idle time can be put to productive use elsewhere for now. Flow unit

$=$

$$one dozen cookies

$1$

$1$

$.$

$$What is the minimum you should charge for

$1$

$$dozen cookies? Flow unit

$=$

$$one dozen cookies

$1$

$2$

$.$

$$What is the change in process capacity if there is only space for

$2$

$$trays to cool? Flow unit

$=$

$$one dozen cookies

$1$

$3$

$.$

$$What is the minimal number of trays you need to ensure you do not loose

$6$

$$flow units per hour? Flow unit

$=$

$1$

$$dozen cookies.

$1$

$4$

$.$

$$What is your process capacity if you buy another identical oven to increase process capacity? Flow unit

$=$

$1$

$$dozen cookies.

$1$

$5$

$.$

$$What is your process capacity if your roommate is sick and you have to perform all his

$/$

her tasks? Or What is your process capacity if you are investigating the option of reducing your labor cost and you decide to manage all the activities instead of hiring your roommate? Flow unit

$=$

$1$

$$dozen cookies

$1$

$6$

$.$

$$How many

$$

orders

$$

$$can you fill in a night

$($

in

$4$

$$hours

$)$

$$if everyone orders

$2$

$$dozen cookies at a time? Flow unit

$=$

$2$

$$dozen cookies

$1$

$7$

$.$

$$What is the labor time in one order cycle when your orders are each "two dozen cookies"? Flow unit

$=$

$2$

$$dozen cookies

$1$

$8$

$.$

$$How many orders can you produce in a night if everybody orders

$3$

$$dozens cookies at a time? Each Flow Unit

$=$

$3$

$$dozen cookies.

$1$

$9$

$.$

$$What is the labor time in one order cycle when your orders are each "three dozen cookies"? Flow unit

$=$

$3$

$$dozen cookies

$2$

$0$

$.$

$$Based on your process capacity analysis for "flow units" of

$1$

$$dozen$,$

$2$

$$dozens and

$3$

$$dozens$,$ what is the process capacity in "dozens of cookies" that can be sold.

$($

Note

$-$

$$the process capacity is the same in all three scenarios in terms of dozens of cookies

$)$

Here$$s the best way to solve it$.$

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Kristin Cookie Company is using a made$-$to$-$order business strategy. This means that they only start making the cookies once an order has been placed. This strategy helps to reduce inventory costs and allows for customization of orders.

To fill a rush order for one dozen cookies, we need to add up the time for each step in the process:

Washing and mixing: $6$ minutes

Spooning onto a tray: $2$ minutes

Baking: $10$ minutes

Cooling: $5$ minutes

Packing: $2$ minutes

Payment: $1$ minute So$,$ the total time is

minutes.

The capacity of the process is determined by the bottleneck, which is the slowest step in the process. In this case, the baking step is the slowest, taking $10$ minutes. Therefore, the capacity of the process is

$.$

The bottleneck in the process is the baking step, as it takes the longest time $(10$ minutes$).$

If you are open for $4$ hours each night, and each order takes $26$ minutes, then you can fill

orders of one dozen cookies in a night.

If the cooling time increases from $5$ minutes to $10$ minutes, the total time to fill an order increases to $31$ minutes. This reduces the process capacity to

orders per night. The flow time also increases from $26$ minutes to $31$ minutes.

The labor time devoted to each production step in each cycle is the sum of the time for washing and mixing $(6$ minutes$),$ spooning onto a tray $(2$ minutes$),$ packing $(2$ minutes$),$ and payment $(1$ minute$),$ which totals to $11$ minutes.

The idle time in each cycle is the time when you and your roommate are not actively working on the cookies. This includes the baking time $(10$ minutes$)$ and the cooling time $(5$ minutes$),$ which totals to $15$ minutes.

The material cost for making one dozen cookies depends on the cost of the ingredients used, which is no