Subject Engineering Industrial Engineering

Question

BAY AREA BAKERY QUESTIONS
This assignment can be done in groups. Perform an analysis on the attached case "Bay Area Bakery Company." In lieu of the discussion questions on the last page of the case, answer the following questions and prepare a report that summarizes your answers.
Questions:
1. Table 2 shows current operating strategy. Is this strategy optimized? If not, what is the optimum shipping allocation from plant to market area?
2. Should Bay Area Bakery add a new plant in San Jose? Base your analysis on optimal shipping allocations. Use the data from table 4 by considering today’s demand as well as 5 year demand to base your decision. Assume no cost increase. As such, use current day operation cost for 5 year evaluation.
3. If we project similar market growth for 10 years, what effect would this have on the decision about whether or not to build the new plant in San Jose?

Note, you report must include an excel spread sheet that illustrates models used for the analysis. It should also include a one page summary (word document) that provides brief answers to the questions and makes references to the models in the excel document.
You are limited to submitting one excel document (with multiple worksheets) and one word document
See Question.pdf for data

Solution Preview

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This proposal is not a valuable one as the programming model does not suggest of building a new baking facility in San Jose. As San Jose is providing an optimum solution of where the company is saving a certain amount on an individual day but as the company is planning to build a new plant it may understand the problem of fund and hence this suggestion is not beneficial for the bakery (Schneider, Ivie, and Glaskowsky). ...

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