Kristen's Cookies Case Summary
[pic][pic][pic][pic]Kristen’s Cookies Company
1. How long will it take to fill a rush order?
Our group has calculated (see Appendix Figure 1) that it will take 24 minutes to fill a rush order if it is the first order placed in the night. This assumes that the oven is already preheated and the mixer bowl and beaters are clean (as sanitary requirements would demand). However, all subsequent orders will require 26 minutes because of the two minutes to wash the bowl and beaters.
2. How many orders can be filled in a night assuming you are open 4 hours?
16 min + 10x = 240 min
10x = 224
x = 22 orders
If a all customers order 3 dozen (the maximum the bowl can handle) and they are all the same cookie, such as a sugar cookie, …show more content…
Should discounts be given?
No discounts should be given. Regardless if the orders are for 3 dozens of the same cookie or for a different type each order, the maximum that can be produced is 22 dozen. However, is would be worth considering giving a discount to returning customers to keep the orders coming in which would also encourage return buyers. Please view these calculations in Figure 2 of the appendix
5. How many electric mixers and baking trays will be needed?
Our group was unanimous in the decision that adding an electric mixer will not improve output. The minimum number of baking sheets needed is 2; one in the oven and one to be placed in the oven. Additional baking trays would not improve output.
6. Could you make any improvements to increase …show more content…
We also calculated the expense of an additional oven and found that it can be justified (depending on the cost and the cash flow of the operation). The spreadsheet was too large to embed within this paper, however. The oven would have to be electric and not violate either city code or the apartment agreement. Assuming we don't purchase a used oven, one available at a garage sale or one purchased off of Craig's list, the cheapest electric oven at Lowe's was $300.00.
If we sell cookies for $5.00 a dozen, our net profit would be $4.30 per dozen. Thus, if we do the maximum order then the total revenue per four hours would be $110 with a net profit of $94.60 per evening. Since electricity is paid for, then the only cost would be $300.00 for the cost of the stove. Depending on number of orders received in the night, a purchase of a new stove could be warranted. Another consideration is to see if it was possible to “lease oven time” from a
1. How long will it take to fill a rush order?
Our group has calculated (see Appendix Figure 1) that it will take 24 minutes to fill a rush order if it is the first order placed in the night. This assumes that the oven is already preheated and the mixer bowl and beaters are clean (as sanitary requirements would demand). However, all subsequent orders will require 26 minutes because of the two minutes to wash the bowl and beaters.
2. How many orders can be filled in a night assuming you are open 4 hours?
16 min + 10x = 240 min
10x = 224
x = 22 orders
If a all customers order 3 dozen (the maximum the bowl can handle) and they are all the same cookie, such as a sugar cookie, …show more content…
Should discounts be given?
No discounts should be given. Regardless if the orders are for 3 dozens of the same cookie or for a different type each order, the maximum that can be produced is 22 dozen. However, is would be worth considering giving a discount to returning customers to keep the orders coming in which would also encourage return buyers. Please view these calculations in Figure 2 of the appendix
5. How many electric mixers and baking trays will be needed?
Our group was unanimous in the decision that adding an electric mixer will not improve output. The minimum number of baking sheets needed is 2; one in the oven and one to be placed in the oven. Additional baking trays would not improve output.
6. Could you make any improvements to increase …show more content…
We also calculated the expense of an additional oven and found that it can be justified (depending on the cost and the cash flow of the operation). The spreadsheet was too large to embed within this paper, however. The oven would have to be electric and not violate either city code or the apartment agreement. Assuming we don't purchase a used oven, one available at a garage sale or one purchased off of Craig's list, the cheapest electric oven at Lowe's was $300.00.
If we sell cookies for $5.00 a dozen, our net profit would be $4.30 per dozen. Thus, if we do the maximum order then the total revenue per four hours would be $110 with a net profit of $94.60 per evening. Since electricity is paid for, then the only cost would be $300.00 for the cost of the stove. Depending on number of orders received in the night, a purchase of a new stove could be warranted. Another consideration is to see if it was possible to “lease oven time” from a