Kristen\u2019s Cookie Company.docx - Kristens Cookie Company Written Analysis of Case Operation and Production Management Submitted To Mohammad Kamran

Kristen’s Cookie Company.docx - Kristens Cookie Company...

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2/8/2016 Kristen’s Cookie Company Written Analysis of Case Operation and Production Management Submitted To: Mohammad Kamran Mumtaz FAHAD ATHAR ERP ID: 10566
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Abstract This case is a second person narrative. Here I have to suppose that I am going to open a cookie company by the name of “Kristen’s Cookie” along with my roommate in my on- campus apartment. The basic concept is that the company will provide freshly baked cookies to students late at night. The students can place their orders which will be ready for pick up within an hour. I have to evaluate the feasibility of the business including what price to charge, decide what equipment will be required along with their quantity and whether the business will be profitable or not. The differentiating point of our product compared to our competitors which are store bought cookies is twofold. First is that we will be offering freshly baked cookies made only after receiving order from the customer and second is that we will be offering customization. The customer will have the option to choose from variety of ingredients to add to the basic dough like chocolate chips, M&M’s, coconut etc. The Production Process We already have the necessary capital equipment which includes: a high capacity professional grade electric mixer, cookie trays and spoons. We have small oven in our apartment that can hold only one tray at a time. The electricity bill is paid by our landlord. The only variable costs we have to endure are the cost of ingredients ($ 0.6 /dozen), the cost of the box in which the cookies can be packed ($ 0.1per box; each box holds a dozen cookies) and the cost of our time (subjective). The production process consists of seven steps: 1. The first step is taking order using the campus email system. When an order arrives, my roommate reads and prints the email and sends a reply to the customer stating the time for pickup and brings the print to the kitchen. This will
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