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    Bakery Capacity Problems

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    Muhammad Hamza Ayoub
    The bakery produces white bread using a four stage process of mixing, proofing, baking, and packing. Each stage takes 3/4 hours or 1 hour per 100 pieces of bread. The bakery is considering adding a new machine to increase their daily capacity by 100 pieces of bread. The new machine would cost a fixed cost of Rs. 150,000 and a variable cost of Rs. 25 per bread. Adding this new machine would allow the bakery to potentially add a new product, whole brown bread, to their offerings.

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    Bakery Capacity Problems

    Uploaded by

    Muhammad Hamza Ayoub
    87 views1 page
    The bakery produces white bread using a four stage process of mixing, proofing, baking, and packing. Each stage takes 3/4 hours or 1 hour per 100 pieces of bread. The bakery is considering adding a new machine to increase their daily capacity by 100 pieces of bread. The new machine would cost a fixed cost of Rs. 150,000 and a variable cost of Rs. 25 per bread. Adding this new machine would allow the bakery to potentially add a new product, whole brown bread, to their offerings.

    Original Description:

    Operation management question of break even and forecasting concept.

    Original Title

    A Bakery Produces

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    The bakery produces white bread using a four stage process of mixing, proofing, baking, and packing. Each stage takes 3/4 hours or 1 hour per 100 pieces of bread. The bakery is considering adding a new machine to increase their daily capacity by 100 pieces of bread. The new machine would cost a fixed cost of Rs. 150,000 and a variable cost of Rs. 25 per bread. Adding this new machine would allow the bakery to potentially add a new product, whole brown bread, to their offerings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    87 views1 page

    Bakery Capacity Problems

    Uploaded by

    Muhammad Hamza Ayoub
    The bakery produces white bread using a four stage process of mixing, proofing, baking, and packing. Each stage takes 3/4 hours or 1 hour per 100 pieces of bread. The bakery is considering adding a new machine to increase their daily capacity by 100 pieces of bread. The new machine would cost a fixed cost of Rs. 150,000 and a variable cost of Rs. 25 per bread. Adding this new machine would allow the bakery to potentially add a new product, whole brown bread, to their offerings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Bakery Capacity Problems:

    A bakery produces and sells one type of bread i.e. white bread. The bakery has the
    following four stage process of bread making.
    Mixing, proofing and baking then it all goes to packing then to market. The cycle
    time for each step is as under
    Mix

    hours per 100 pieces

    Proof

    hours per 100 pieces

    Bake

    1 hour per 100 pieces

    Pack

    hours per 100 pieces

    Raw
    Material

    MIX

    Hours

    Proof

    Hours

    Bake
    1 Hour

    Pack

    Hours

    Finished
    Goods

    Fig 1: Process Flow Diagram with cycle time


    The bakery is considering adding one more plant to bake 100 more breads per
    cycle. The cost of new machine based on fixed cost Rs. 150,000/- with variable cost
    of Rs. 25/Bakery is considering adding new whole brown bread to the existing product line its
    offers. That is reason for them to consider the addition of new machine.
    Questions:
    1. Determine the bakery daily capacity with 8 hours working day in existing
    machine and well as with new machine.
    2. Determine the throughput time. Of existing one machine and with two
    machines after purchase of new system.
    3. Identify the bottle neck for existing system.
    4. Evaluate the option to add new machine as well as with new product.

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