1 Explain what Victoria SA has achieved in terms of P-time and D-time (see section 5.4). Victoria SA makes ‘fantastically good cakes’ from basic ingredients like flour, water and cherries. Demand for Victoria sponge cakes comes from two sources. Some big retailers place their order with the firm two days in advance, while other customers arrive at Victoria’s own shops without prior warning and select from cakes that are on display.

This means that some cakes are made in line with orders, whilst a forecast is also required to predict day-by-day demand.

Whilst there are many varieties of cake, the bill of material for the Victoria’s famous sponge cake is shown in Figure 6.2.