Concept explainers
When 18,500 Orlando Magic Fans Come to Dinner Video Case
With vast experience at venues such as the American Airlines Arena (in Miami), the Kentucky Derby, and Super Bowls, Chef John Nicely now also plans huge culinary events at Orlando’s Amway Center, home of the Orlando Magic basketball team. With his unique talent and exceptional operations skills, Nicely serves tens of thousands of cheering fans at some of the world’s largest events. And when more than 18,500 basketball fans show up for a game, expecting great food and great basketball, he puts his creative as well as operations talent to work.
Chef John must be prepared. This means determining not only a total demand for all 18,500 fans but also translating that demand into specific menu items and beverages, He prepares a
Chef John frequently changes the menu to keep it interesting for the fans who attend many of the 41 regular season home games each season. Even the culinary preference of the opponent’s fans who may be attending influences the menu. Additionally, when entertainment other than the Magic is using the Amway Center, the demographic mix is likely to be different, requiring additional tweaking of the menu. The size of the wait staff and the kitchen staff change to reflect the size of the crowd; Chef John may be supervising as many as 90 people working in the kitchen. Similarly, the concessions stands, 40% of which have their own grills and fryers, present another challenge, as they are managed by volunteers from nonprofit organizations. The use of these volunteers adds the need for special training and extra enforcement of strict quality standards.
Once deciding on the overall demand and the menu, Chef John must prepare the production specifications (a bill of material) for each item. For the evening game with the Celtics, Chef John is preparing his unique Cheeto Crusted Mac & Cheese dish. The ingredients, quantity, costs, and labor requirements are shown below:
Production Specifications
The yield on this dish is 6 portions, and labor cost is $15 per hour, with fringes. The entire quantity required for the evening is prepared prior to the game and kept in warming ovens until needed. Demand for each basketball game is divided into 5 periods: prior to the game, first quarter, second quarter, half-time, and second half. At the Magic vs. Celtics game next week, the demand (number of portions) in each period is 60, 36, 48, 60, and 12 for the Cheeto Crusted Mac & Cheese dish, respectively.
Discussion Questions*
*You may wish to view the video that accompanies this case before answering the questions.
1. Prepare a bill of material explosion and total cost for the 216 portions of Cheeto Crusted Mac & Cheese.
Want to see the full answer?
Check out a sample textbook solutionChapter 14 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
- What does process planning entail? How would process planning differ for batch and continuous processes?arrow_forwardExplain Sales and Operations Planning as a Process?arrow_forwardQue#87: Choose the best answer. Level output/workforce strategy: Monthly planning for all the products in same family (and facility) for the next 12 months or so Meeting variations in demand with overtime, subcontracting & part-time/temporary workers Meeting variations in demand with inventories Process of integrating sales forecasts with operations plans Finding the most optimal planarrow_forward
- How do the concepts of master production scheduling and material requirements planning translate to a service organization? Provide an example.arrow_forwardi already draw the flow chart please help b and carrow_forwardWal Mart, although they are not a manufacturing company, uses sophisticated computer software to forecast sales and order products to be stocked in their stores so that they do not run out of the things shoppers are looking for. What kind of software system does Wal Mart likely use? Group of answer choices a) Inventory control b) Just-in-time ordering c) E-procurement d) Materials Requirement Planning (MRP)arrow_forward
- Relative to sales and operations planning, contrast the “Level” strategy from the “chase” strategy?arrow_forwardDohini Manufacturing company had following 12 months of data on purchasing cost and number of purchase orders. Required: 1. Determine the high point and low point. 2. Calculate the variable rate for purchasing cost based on the number of purchase orders. (Round to nearest cent) 3. Calculate the fixed monthly cost of purchasing.(Round to nearest dollar). 4. Write the cost formula for the purchasing activity showing the fixed cost and the variable rate. 5. If Dohini manufacturing company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for the that month?(Round to nearest dollar) 6. What if Dohini manufacturing wants to estimate purchasing cost for the coming year and expects 5340 purchase orders? What will estimated total purchasing cost be? What is the total fixed purchasing cost? Why doesn't equal the fixed cost calculated in Requirement 3?(Round to nearest dollar)arrow_forwardDescribe the ideal exterior store design for Clothing Store.arrow_forward
- Which approach to process planning is more useful in a time-sharing environment?arrow_forwardScatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 165,400 1,500 100,750 4,400 241,400 2,800 163,800 2,300 139,550 1,200 86,200 2,000 125,000 1 2 3 4 5 6 7 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 28,000 + $48.5 X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly order-processing costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter_Diagram $ 15,000 X+ $53.14 X Xarrow_forwardLook at the question belowarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.