Assignment1: Biddy`s Bakery Case Study

Odontuya Erdenebileg

Bus 515
Professor, Dr. Travis Davidson
July 18, 2012 Explain the challenge Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility.
However, initially sales were slow at the beginning, after a few years Biddy`s Bakery began to attract an attention of customers thus, first floor of “Biddy`s” home couldn`t provide all demand. Therefore, Elizabeth decided to move larger facility. After Biddy`s Bakery moved into larger facility which is more capacity than needed, Elizabeth noticed that her sales volume had not been met with what she expected and she was paying for a facility with unused space.
In my opinion, she should have calculate carefully how larger facility needs for Biddy`s Bakery, how much costs the location, and whether she can make more sales than now she is doing. In other words she needed to consider Capacity Planning. Capacity planning is the process used to determine how much capacity is needed in order to manufacture greater product or begin production of a new product. (Burack, E.H & Cassell, F. H. 1967). If she had considered it before moving into larger facility, she might choose the different place which is more convenient for Biddy`s Bakery`s capacity and thus, they were not spend money for useless expense. Business might have been successful.
Determine what`s wrong with the proposal made by the team of the business students and why.
Elizabeth knew that her operations methods, though traditional, were sound. Therefore, she wanted to change her method but, the team of business students she chose gave an advice to keep her old manner. This is the reason why she decided to contact another team of business students to help her with her predicament. In other words, the proposal made by the team of the