Biddy's Bakery

1042 Words5 Pages
This paper will discuss the case study dealing with Elizabeth “Biddy” McDoogle’s bakery. Specifically dealing with: 1. Explain the challenge Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility 2. Determine what is wrong with the proposal made by the team of the business students and why. 3. Explain how the business would be different if Elizabeth accepts the proposal made by the students. 4. Discuss the advice you would give Elizabeth on how to proceed. Capacity Needs Elizabeth’s challenge in meeting her capacity needs was her lack of knowledge in the area of capacity. She did not understand how to determine what her capacity needs were or how important it was to figure it out. In not determining this she made a costly decision that could have been avoided had she used capacity planning. Elizabeth should have used a business method called capacity planning when trying to determine what are capacity needs were before purchasing more space for her business. Capacity planning is a process used determining the production capacity a business needs to meet before considering to expand or downsize. The formula for capacity planning is: (number of machines or workers) x (number of shifts) x (utilization) x (efficiency). In Elizabeth’s case not using the capacity formula led to her making a costly mistake, purchasing the adjacent building and increasing her business space. This led to inefficiency in her business and losing money that could have been used to promote her business. She also could have taken a look at different strategies for capacity and considered which one would suit her needs and help her reach her goals for the business in the short and long term. The three capacity strategies she should have considered are: 1. Lead
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