Kristen’s Cookie Company

Kristen’s Cookie Company

Operations Management

Kristen’s Cookie Company

Case Analysis by Group 3

黄丹英 刘 榴 王诗语 王轩奕

2011201549 2011201593 2011201645 2011201652 2013/9/29

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Kristen’s Cookie Company

Index Executive Summary ............................................................................................... 3 Problem Statement .................................................................................................. 3 Analysis................................................................................................................... 3 1. Situation of only one oven. .......................................................................... 3 2. Situation of two ovens. ................................................................................ 5 Options .................................................................................................................... 6 Recommendation .................................................................................................... 7 Implementation ....................................................................................................... 7 Risk and contingency .............................................................................................. 7 Conclusion .............................................................................................................. 7

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Kristen’s Cookie Company

Executive Summary With the concern of human capital cost, we set the price at $4 per box of cookies. We separately analyzed the flow time of situations with one and two ovens and built up proper discount strategy for each case. We also considered possible risk and came up with a backup plan. Besides, as value of time input is difficult to measure, we use minimum wage as a measure for time value, which is in accordance with the opportunity cost concept.

Problem Statement On starting a cookie business with a roommate, there are several...