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SITUATION 3A UTILIZATION OF A CONSTRAINED RESOURCE Belair Bistro identied that the caf's main bottleneck is Chef Pierre's time. The manager is currendy reviewing d1e
SITUATION 3A UTILIZATION OF A CONSTRAINED RESOURCE Belair Bistro identied that the caf's main bottleneck is Chef Pierre's time. The manager is currendy reviewing d1e quantity of each item that should be produced on a daily basis. During the afternoon. Pierre usually spends his time baking macarons and quiches. Everyday, the cafe sells out of the boxes of macarons and quiches. The demand for both products therefore far exceed the daily production of the caf. The following information about the products is provided to you by the manager: Box of II Quiche macarons Selling Price per unit $30 $ l8 Variable Costs m 515 Contribution Margin $ l2 $3 Chef Pierre explained that the macarons are an art and require a lot of time and precision to make. He therefore spends l8 minutes of his time on each box of l2 macarons while a quiche only requires 8 minutes of his time. REQUIRED: I. Which product should be prioritized by Chef Pierre in order to ensure that. Belair has the highest prot? 2. What qualitative factors should you consider when selecting which product should be prioritized? SITUATION 3B - UTILIZATION OF A CONSTRAINED RESOURCE - DATA ANALYTICS WITH EXCEL SOLVER I. Find the optimal product mix for Belair Bistro considering all products made by Pierre. In your analysis, you must consider the following constraints: You cannot produce more than the estimated demand for the product ii. You must produce at least 75 croissants each day iii. The number of quiches should equal the number of sandwiches. iv. The total Direct Labour minutes cannot exceed 3,404 minutes. Below is the current production of Belair Bistro. Macaron (box) Cookies Pie Muffin Croissant Danish Bread Quiche Sandwich Scones CM per unit Creme Brule Cake $12 $1 $5.70 $0.70 $1.20 $1.20 $0.95 $3 $1.25 $0.45 $2.40 DL Minutes $14 18 3 10 6 0.6 8 3 1.2 CM / DLM 6 25 $0.67 50.33 $0.57 $0.70 $0.20 $0.17 $1.58 50.38 $0.42 $0.38 Demand $0.40 $0.56 80 75 37 60 85 30 140 25 35 20 24 36 Current Production 50 75 40 45 75 30 100 20 20 20 20 30
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