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Coffee Company, a locally owned company with a single coffee shop location, serves a wide selection of espresso products, small breakfast and lunch menu items,

Coffee Company, a locally owned company with a single coffee shop location, serves a wide selection of espresso products, small breakfast and lunch menu items, and a limited evening menu. The company is planning to expand the business by adding an additional location. While different menu items may be tested at the new location, the espresso beverage preparation process will remain exactly the same. You and your business partners need to make a decision about the supply chain before the move. The following information may help support your analysis for Coffee Company:

  • You have one espresso maker that brews the espresso and froths the milk at each location.
  • Each espresso beverage requires 1.5 minutes of the barista's time.
  • Each espresso beverage requires some combination of espresso beans, milk, and flavoring.
  • Each espresso beverage is served in a paper cup with a lid and sleeve.
  • Monthly cleaning and maintenance of the espresso maker is outsourced to a services company.
  • You stock one type of espresso bean. If you run out of inventory, you have to close the business until the next shipment of beans arrives.
  • Espresso beans are received seven (7) days after placing the order Example of a chart flow for a coffee shop trying to expand

*****Using MTS and ATO (supply chain) for a COFFEE SHOP that wants to open a new location*****

1. Possible bottlenecks for MTS and ATO

2. Would MTS consider an Effective and Push production type?

3. Would ATO consider a Responsive and pull production type?

References

https://vksapp.com/blog/mts-mto-ato-how-you-can-use-these-strategies

http://www.lean-manufacturing-japan.com/scm-terminology/mto-make-to-order.html

https://katanamrp.com/blog/make-to-order-vs-make-to-stock/

https://tulip.co/blog/what-is-a-push-system-vs-a-pull-system/

https://www.supplychainopz.com/2012/04/what-is-logistics-and-supply-chain-management.html

https://supplychainmanagement.utk.edu/blog/logistics-and-supply-chain-management/

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