Kristens Cookie Co.

- Case

How long will it take to fill a rush order? How many orders can you fill in one night assuming 4 hours each night? How much of your own and your roommates time will it take to fill each order? Should you give a volume discount? If so, how much? How many food processors and baking trays will you need? Changes better cookies, more cookies in less time or lower cost? Additional oven?
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Kristens Cookie Co. - #1

Wash, mix, spoon Bake Cool Pack Accept Payment

6 + 2 min per dozen. 7.5 dozen per hour

10 min per dozen 6 dozen per hour

5 min per dozen 12 dozen per hour

2 min per dozen 30 dozen per hour

1 min per dozen 60 dozen per hour

26 minutes / dozen What is the bottleneck?

- Bake Operation (6 dozen / hr)
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Kristens Cookie Co. - #2

Order Size - 1 Dozen Cookies Minutes Mix Spoon Bake Cool Pack Accept Pay Kristen Roommate Minutes
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 1 2 3 4 5 6 7 8 9

Tray 1
1

Tray 2 Tray 1
2

Tray 3 Tray 2 Tray 1 1

1 3

Tray 3 Tray 2 2
2

Tray 3 3
3

Less 8 min startup and 8 min finish, max capacity = (4*60 16) / 10 = 224/10 = 22

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Kristens Cookie Co. - #3

Kristen works 8 mins / batch or about 8x6 or 48 mins / hr = 80% Roommate works 4 mins / batch or about 24 mins / hr = 40% Profitability?
Assume Price = $5 / dzn; Cost = $0.70 Max profit = (22x5) (22x0.7) = $110 $15.40 = $94.60 or $23.65 / hr.
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