Case Biddy's Bakery

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Biddy’s Bakery (BB) Biddy’s Bakery was a start-up home-style bakery founded by Elizabeth McDoggle in 1984. The bakery started off as an alternative to commercially baked goods. “The mission of Biddy’s bakery was to produce a variety of baked goods with old-fashioned style and taste. The goods produced included a variety of pies and cakes and were sold to the general public and local restaurants (Reid & Sanders, 2010, p. 95).” The bakery originally started with Elizabeth and her friends. They took recipes that had been handed down through their families to make small production of baked goods. The demand of the business grew from a small production on the 1st floor of Elizabeth home which was in a mixed commercial and residential area. The bakery was arranged with workstations set up to perform a variety of task from 6 a.m. to 2 p.m. The operations received mostly advance orders to manage the inventory of making the baked goods. Business was growing and Elizabeth decided to expand the business to an adjacent building and move the bakery. Explain the challenge Elizabeth faced in meeting her capacity needs and what should she have considered before moving into the larger facility? Elizabeth decided to move the bakery when it out grew the space in her house. The new space had more capacity than needed. Elizabeth thought that the business would continue to grow but by the end of the year she had not met her expectations. Capacity planning is defined as , “Systematic determination of resource requirements for the projected output, over a specific period (Business Dictionary).” Elizabeth was paying for a facility with unused space and not enough sales to cover. Before, Elizabeth moved she should have had a game plan in place. She should have evaluated what the break-even analysis was. She only assumes that because sells were growing that she would

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