Moondollar Coffee just bought a new coffee grinding machine and a new coffee brewing machine. The machines are heavily automated. The beans are stored in six different containers on the grinding machine. The bean containers hold the following beans: House Blend, Antique, Kenya, Kona, Maragogype, and Tarrazu. The machine grinds the beans and fills the disposable paper cottee ground baskets for the brewing process. The filled paper coffee baskets are manually inserted in the plastic holders in the brewing machine. 6 carafes can be brewed

simultaneoustv.

The following sequential activities have been identified in Moondollar's value chain.

Raw Bean Storage: The counter workers refill the bean containers when they contain

75% of the original volume. Each canister is designed to hold enough coffee for

24 carafes. Because of the location and size of the coffee bean bags, this is a quick and simple activity with no capacity concerns.

Heating: Water pipes are connected to the inputs and water is pumped to the heating coils. Water is heated to the ideal temperature and dripped over the grounds.

The supply of heated water is unlimited.

Grinding: The grinding function fills a basket in 3 minutes. I can only grind one type of bean at a time. Because high speed grinding can affect the flavor, Moondollar sets the grinding speed at the slowest setting. Each basket produces a fresh 12-cup carafe of coffee. It takes 10 seconds to fill each basket with ground coffee.

Brew and Clean: The drip process brews six fresh 12-cup carafes in 10 minutes, and then they must be cleaned for the next batch. The cleaning process takes approximately 5 minutes. Six separate carafes can be made at the same time.

The counter workers empty and clean the holders and replace the paper filter after each type of coffee is brewed.

Coffee Storage: The brewed coffee is poured into and stored in six heavily insulated 64-cup canisters by the counter workers. Fresh coffee is a critical success factor that differentiates Moondollar's product. Therefore, there is a strict policy to depose of any coffee in storage after one hour.

Demand and Strategy: The customer traffic at Moondollar fluctuates heavily. The highest traffic is from 7:00 a.m.- 9:00 a.m. on Monday-Friday. The manager turns the machine on at 6:30 a.m. This allows the machine a one minute warm up so that the beans are ground. It takes 10 seconds to fill a basket with a flavor of ground beans. One set of six carafes can then be brewed and ready to serve at 7:00 a.m. The manager estimates the morning demand at 180 customers per hour who purchase on average 1.5 cups of coffee. Customer demand has always been equal for the different coffee flavors. Moondollar's long-term lease specifically states that the building cannot be used prior to 6:30 a.m.

Management Decision Issues:

Moondollar's manager wants to know if he should buy a second brewing machine that is one half the size of the current machine, and produces 3 carafes of coffee at the same rate of speed as the 6-carafe version. For significantly less money the manager could buy a second grinding unit that would increase the grinding capacity by 25%. The manufacture assures Moondollar's manager that as many as three new brewing machines and grinding machines can be linked with the present equipment in a perfectly seamless configuration.

Questions:

Moondollar's hourly demand for each flavor of coffee is.

a) 30 cups

cups of coffee?

45 cuos

c) 180 cups

42 cups

2. How many total cups of coffce will Moondollar have available to start selling at 7:00 a.m.

Given the Demand and Strategy of Moondollar?

a)

72 cups

b)

60 cups

12 cups

45 cups

Over the two-hour peak selling time, how many cups can be brewed?

a)

540 cups

b) 504 cups

C)

432 cups

d) 864 cups

4. In order to meet the hourly demand, what additional products does Moondollar need to acquire?

They need to purchase the 3-carafe brewer

They need to purchase another 6-carafe brewer

They need to buy a second grinding machine

They need to buy a second grinding machine and the 3-carafe brewer.

5. What is the hourly capacity of the current 6-carafe brewer?

288 cups

270 cups

180 cups

216 cups

6. What is the hourly capacity of the current grinder?

227 cups

240 cups

216 cups

e) 248 cups