Introduction
Company BB is engaged in production and selling of bagels. It is one of the top successful firms with over 450 shops in the industry. Many stores of company BB generate an average of $800,000 annual sales.
The production of bagels is done is batches and according to flavor. The production begins at the processing floor where the ingredients are mixed in a special machine. They are loaded into another truck after they are formed and transported to the store. Finals steps of boiling and malting are done at the store which is shown in the figure.
Quality is a main feature of a successful business and the customers give high preference to quality, taste and consistency. Company BB gives high importance to quality at each stage of its operation. The employees are instructed to conduct a manual check to identify deformed bagels.
The company operates with minimum amount of inventory of partially completed bagels at the plant. It gives high freshness to the product and also allows keeping the cost low with less space.
To determine: The advantages of having bagel making machine at the plant and at each of the stores.
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
Operations Management
- The Role of Information Technology in Business Success Source:Information technology is the study, design, development, implementation, support or management of computer-based information systems. Information technology has become very important in the business world. Many businesses use information technology to support their goal of making the business more success ful in terms of performance and productivity. Organisations need to maintain enough stock to meet demand without investing in more than they require. By using information technology in inventory management, a company is able to track the quantity of each item. Electronic commerce (e-commerce) through the Internet, electronic mails (e-mails), Websites, and other facilities enables a businessman to be linked with every corner of the world, and thus opens up greater opportunities in the global market. Delays in processing a business transaction may become synonymous to wasting an opportunity. Therefore, a quick and…arrow_forwardThe Role of Information Technology in Business Success Source:Information technology is the study, design, development, implementation, support or management of computer-based information systems. Information technology has become very important in the business world. Many businesses use information technology to support their goal of making the business more success ful in terms of performance and productivity. Organisations need to maintain enough stock to meet demand without investing in more than they require. By using information technology in inventory management, a company is able to track the quantity of each item. Electronic commerce (e-commerce) through the Internet, electronic mails (e-mails), Websites, and other facilities enables a businessman to be linked with every corner of the world, and thus opens up greater opportunities in the global market. Delays in processing a business transaction may become synonymous to wasting an opportunity. Therefore, a quick and…arrow_forwardThe Role of Information Technology in Business Success Source:Information technology is the study, design, development, implementation, support or management of computer-based information systems. Information technology has become very important in the business world. Many businesses use information technology to support their goal of making the business more success ful in terms of performance and productivity. Organisations need to maintain enough stock to meet demand without investing in more than they require. By using information technology in inventory management, a company is able to track the quantity of each i tem. Electronic commerce (e-commerce) through the Internet, electronic mails (e-mails), Websites, and other facilities enables a businessman to be linked with every corner of the world, and thus opens up greater opportunities in the global market. Delays in processing a business transaction may become synonymous to wasting an opportunity. Therefore, a quick and…arrow_forward
- The Role of Information Technology in Business Success Source:Information technology is the study, design, development, implementation, support or management of computer-based information systems. Information technology has become very important in the business world. Many businesses use information technology to support their goal of making the business more success ful in terms of performance and productivity. Organisations need to maintain enough stock to meet demand without investing in more than they require. By using information technology in inventory management, a company is able to track the quantity of each i tem. Electronic commerce (e-commerce) through the Internet, electronic mails (e-mails), Websites, and other facilities enables a businessman to be linked with every corner of the world, and thus opens up greater opportunities in the global market. Delays in processing a business transaction may become synonymous to wasting an opportunity. Therefore, a quick and…arrow_forwardAssume that the Ken Cory Consulting and Construction Company is involved in four different businesses that have almost no linkages between them (such as being in financial consulting, road construction, wheat farming, and auto repair industries simultaneously). Now assume that the financial consulting company accounts for 12% of total company revenues, road construction accounts for 74% of company revenues, wheat farming accounts for 10%, and auto repair accounts for 4% of total company revenues. What is the best way to describe the level or category of diversification that the Ken Cory Company has? O Conglomerate O Single Business O Related-Linked O Dominant Businessarrow_forwardWelcome to The Fresh Connection company! As newly appointed Vice President, your task is to save your company from bankruptcy and make it as profitable as possible. The shareholders and all your employees are counting on you to make The Fresh Connection successful again! What will be your strategy when deciding on purchasing, operations, sales, and supply chain? What will be your long-term survival and changes?arrow_forward
- Wear It Again is an online personal styling service in the United States. It uses recommendationalgorithms and data science to personalize clothing items based on size, budget and style. The companywas founded in 2011 and had an initial public offering in 2017 with a valuation of $1.6 billion. Thecompany has expanded so quickly that they find themselves in need of adopting an automated clothingwarehouse system to help streamline their picking, packing, and shipping operations. Their clothingmanagement specialist, Kerry Goins, has been charged with the automated warehouse systemdevelopment process. She talked with several key personnel in the company including members of thewarehouse management team, engineering personnel, and the information technology implementationcoordinator to determine what tasks need to take place in order to ensure the project is a success. Thefollowing tasks were identified along with their immediate predecessors and task duration estimates (alltimes are in…arrow_forwardImagine that the company follows a cost-leadership strategy and has a “no cash refunds” policy inorder to reduce company costs. What kind of plan or rules would you develop for your employees tofollow to deliver consistent customer service if a customer wants a refund?C. When might it be ethical to violate the rules you developed in (b) above in order to deliver the rightresponse to a customer service problem?arrow_forwardPhil and Sandy are looking to purchase their first home together. Both of them recently graduated from college and are just starting to establish their careers. What type of loan will best work for Phil and Sandy? • An FHA insured loan because of the minimal down payment requirements and low interest rates for first-time home buyers. An adjustable-rate mortgage because of the changing interest rate over time. O A purchase money mortgage because of its higher interest rate. • A VA loan because of its zero down payment option.arrow_forward
- Read the statements below and answer all the five questions that follow:Materials management includes the job of purchasing. In any industry, purchase refers to the acquisition of necessary equipment, materials, tools, and parts. The relevance of the buying function varies depending on the industry and its size. This duty is performed by the works manager in small businesses, and by a distinct department in major manufacturing companies. As soon as a purchaser places an order he/she commits a substantial portion of the finance of the corporation which affects the working capital and cash flow position. He/she is a highly responsible individual who interacts with many salespeople and can thus be deemed to have contributed to the company's public relations efforts. Source: https://businesstech.co.za/news/business/220551/these-are-the-5-biggest-retailers-in-south-africa/ You are managing the purchasing department at Walmart's Cambridge Foods in South Africa. Critically discuss the…arrow_forwardi need answer urgentarrow_forwardDetermine a capital good (an item with a useful life in excess of 1 year) that you need to acquire for your business. How will this asset improve the efficiency or effectiveness of your business? How is the future benefit of the asset translated into the present and quantified for a profitable decision for your business? Which technique to evaluate the data best suits your business? Explain.arrow_forward