Question
QUESTION 1: Sustainable management practices & lean principles [20 marks] Byron Bay Cookie Company operates two bakehouses, one on the Gold Coast and the other
QUESTION 1: Sustainable management practices & lean principles [20 marks]
Byron Bay Cookie Company operates two bakehouses, one on the Gold Coast and the other in Byron Bay. There has been a reduction in demand for its products and it is no longer viable to operate both bakehouses. Management needs to decide which of the two it will discontinue to operate in the coming year.
A preliminary investigation shows that the Gold Coast bakehouse is able to produce products at a faster rate than the Byron Bay bakehouse. However, this is because of an inefficient heating process. Transport costs are cheaper at the Gold Coast plant, as it is located closer to major suppliers. The following information relates to the two bakehouses for the past year:
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