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Kristen’s Cookies
A case onFlowtime, Batching and Costs
Kristen’s Cookies
Two friends cooking cookies at their apartment room for college students.
MappingInputs toOutputsthroughResources
Process FlowChartwith aunit of analysis ofdozen (=12) cookies
Receive Order
Wash and Mix Dough,Spoon Dough to Tray
Unload
Load andSetTimer, Bake
Pack
Cool
Deliver &Be paid
4 Key Questions
Orders can be for 1 dozen cookies or 2 dozen cookies, assuming each separately.Howlongdoesit take you to fill a rush order?Howmanyorderscanwe fill in anight?How muchlabor time is required to fill an order?How muchdiscount should we give to orders with 2 dozen cookies?
Capacity1 Oven; Orders for 1 Dz. And 2 Dz. Cookies
The First Key Question: How long to fill an order?
Scheduling Ordersfor 1 Dozen cookies in a Gantt chart
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Time in minutes
Activities
Resources
The Second Key Question: How many orders per night?
The Third Key Question:Labor Time?
What is the cost of dozen cookies?Cost of cookie = Cost of material + Cost of labor
Fourth Key Question: Pricing - Discounts
With one oven and flexible laborShould we give a discount to a two dozen order as compared to a one dozen order?Howmuch?With one oven and inflexible laborShould we give a discount to a two dozen order as compared to a one dozen order?Howmuch?
Suggestions
What are the simple activities similar to cooking that can be done at home to start a business?

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