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As you already know, Charlie Cooker keeps meticulous records and knows that the overall daily demand for the C4 Chocolate Chip Crunch Cookie is 1,100
As you already know, Charlie Cooker keeps meticulous records and knows that the overall daily demand for the C4 Chocolate Chip Crunch Cookie is 1,100 dozen. The production line runs from 9am to 4pm daily Monday through Saturday. C4 has very high freshness and quality standards, so they only sell cookies made on the same day. The owner, Charlie Cooker, knows that he can sell more cookies if he can just make them. He has identified the bottleneck to be the extruding machine and he wants to analyze the impact of using four managerial levers he has at his disposal to increase the capacity of the extruder and therefore increase the daily production of C4 Chocolate Chip Crunch Cookies. The lever you want to analyze here is increasing batch size. Increasing batch size will take better advantage of economies of scale, which means that the setup time (fixed time per batch) will be spread out over more units of production this reducing the production time per cookie. The drawbacks of larger batch sizes are more work in process (WIP) inventory and more wear and tear on the mixers since they are dealing with heavier loads. The higher WIP levels mean
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