My roommate’s valuable time cycle includes setting the thermostat and time, packing the cookies, and collecting payment which totals to 4 minutes (setting thermostat and time 1 minute + packing 2 minutes + collecting pay 1 minute = 4 minutes). Layoff add both of these valuable times together it is 8+4 which totals to an amount of 12 minutes total/order between the two of us. ) Because your baking trays can hold exactly one dozen cookies, you produce and sell cookies by the dozen. Should you give any discount for people who order two dozens order cookies, three dozens cookies, or more?
If so, how much? Will it take you any longer to fill a two-dozen cookie than a one-dozen cookie order? Since the second and third dozen of cookies takes a marginal amount of less time, than producing the first one, we would offer a discount of 10-20% off if they were to order a second or third dozen. Two produce one order of a dozen cookies it takes 12 minutes (6+2+1+2+1) which is what we found in the previous problem. The valuable time it takes to produce two dozen cookies is 6+ 2+ 1 + 2* 2+1 = 17 minutes. And to produce three dozen it is 6 +2+ 1 +2 1 = 22 minutes.
Since the ingredients and the boxes all cost the same for each dozen, we look at how much time we save by selling more dozens than just one to a customer. In this case with the time we save selling more dozens we can still be profitable by providing a discount to our customers. How many electric mixers and baking trays will you need? Would say we would need one electric mixer since it’s idle for a long term during the production. We would need 3 baking trays since one mixer cannot hold more Han 3 dozens of ingredients during the whole process. Are There Any Changes You Can Make In Your Production Plans That Will Allow You To Make Better Cookies Or More Cookies In Less Time Or At Lower Cost? The first thing that we would do is create a cookie menu, which will provide for quicker customer orders and process times. Another suggestion for change is to freeze pre made balled cookies. Once the customers order it will be much quicker and easier to just pull the frozen balls out of the freezer and begin processing their order. Another possibility to help improve the process is to add a second oven.
Adding a second oven will allow for more output of cookies assuming we have the demand there. In this case the new bottleneck is mixing the ingredients and spooning it out onto a tray. If we were to add a second oven to the process, we could produce 7. 5 dozen per hour opposed to the 6 dozen (60/10) dozen per hour that we were producing with one oven. So, the process’s nightly (4 hour) capacity increases from 24 to 30 dozen per night, in short, we will see an increase of 6 dozen per night with the addition of another oven. This will only be worth it if our demand requires it and we can continue to fill orders.