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Essay on Kristen's Cookie Company

Satisfactory Essays

1. How long will it take you to fill a rush order?
• Order Size 1 Dozen: 6 + 2 + 1 + 9 + 5 + 2 + 1 = 26 minutes
• Order Size 2 Dozen: 26 + 1 + 9 = 36 minutes
• Order Size 3 Dozen: 36 + 1 + 9 = 46 minutes
2. How many orders can you fill in a night, assuming that you are open four hours each night?
• 4 hours = 240 minutes
• Bottleneck is the oven (setting and baking), which takes 10 minutes
• Must account for the 8 minutes required to prepare prior to baking (wash/mix/spoon) the first batch
• Must account for the 8 minutes required to complete (cooling/accept payment/packaging) the final batch
• 240 – 8 – 8 = 224 minutes available for bottleneck usage
• Each order is 1 Dozen
i. Each order requires 1 instance of bottleneck …show more content…

4 minutes by roommate: set oven (1 minute per dozen), package (2 minutes per dozen), and accept payment (1 minute per order)
• This represents 1 labor minute per cookie (12 labor minutes / 12 cookies) ii. 2 Dozen
• Requires 17 total labor minutes to produce
a. 10 minutes by Kristen: prepare (6 minutes) and spoon (4 minutes)
b. 7 minutes by roommate: set oven (2 minutes), package (4 minutes), and accept payment (1 minute)
• This represents 0.71 labor minutes per cookie (17 labor minutes / 24 cookies)
• This means that there was a 29% reduction in labor (1 – 0.71), which means that it cost us 29% less in labor. Therefore, we can discount the price of 2 dozen up to 29% and still make at least the same amount of money as we would if we were to sell the 2 dozen separately (in separate orders) iii. 3 Dozen
• Requires 22 total labor minutes to produce
a. 12 minutes by Kristen: prepare (6 minutes) and spoon (6 minutes)
b. 10 minutes by roommate: set oven (3 minutes), package (6 minutes), and accept payment (1 minute)
• This represents 0.61 labor minutes per cookie (22 labor minutes / 36 cookies)
• This means that there was a 39% reduction in labor (1 – 0.69), which means that it cost us 39% less in labor. Therefore, we can discount the price of 3 dozen up to 39% and still make at least the same amount of money as we would if we were to sell the 3 dozen separately (in separate orders) iv. Filling a 2-dozen order will require an additional 10 minutes

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