Fine Country Fruit Cakes Answer

Answer

Fine Country Fruit Cakes

1. With the current method of working, what is the monthly and annual capacity of the business?

The capacity has been calculated according to the following assumptions:-

• There are five working days per week. • There are four weeks per month. • The 1995 forecast assumes a similar demand pattern to 1994. • The rate of production is the same as in 1994. No down time is assumed. • The sales for 2kg cakes in February 1994 have been corrected to 340 cakes (680kg) as the original sales figure results in negative stock figures. • The total opening stock of 300kg is not taken into account for the calculations.

The calculations are as follows:

All production in 10kg batches, i.e. ten 1kg cakes or 5kg cakes

Production:

|Cake size (kg) |Cakes/ |Batches/ |Cakes/ |Kg/day |Cakes/ |Kg/wk |Cakes/ |kg/ |
| |batch |day |day | |wk | |month |Month |
|1 |10 |2 |20 |20 |100 |100 |400 |400 |
|2 |5 |2 |10 |20 |50 |100 |200 |400 |
|TOTALS | | |30 |40 |150 |200 |600 |800 |

During March, April, November and December, production of the 2kg cakes was increased by 50%:

|Cake size (kg) |Cakes/ |Batches/ |Cakes/ |kg/day |Cakes/ |kg/wk |Cakes/ |kg/ |
| |batch |day |day | |wk | |month |month |
|1 |10 |2 |20 |20 |100 |100