Bruegger’s Bagel Bakery
1. Benefits and risks of their inventory policy;
a. Benefits: this policy maintains a high degree of freshness in the final product by continually supplying fresh product to the stores. It minimizes storage, inventory and overhead costs. Delivery of raw materials is scheduled based on the needs of production, such that materials arrive just as they are needed. A strong relationship with raw material suppliers and strict monitoring of material levels is essential to this inventory process
b. Risk: This policy has a risk of production stoppage; if materials needed for production do not arrive in a timely manner, production may be delayed or halted until supplies arrive. This delay can reduce productivity and result in lost sales.
2. Quality importance at Bruegger’s
a. Customer judge the quality of bagels by their appearance, this includes size, shape and even shine. Customers are also sensitive to the service they get when making their purchases at the stores. b. Bruegger’s devotes careful attention to quality at every stage of the operation, but is at the stores where employees are instructed to watch for deformed bagels and to remove them when they find them. c. Steps of production process:
i. Purchase of ingredients.
ii. Basic ingredients are combined in a special mixer machine at the processing plant. iii. Dough is transferred into a machine that shapes the dough into individual bagels. iv. Once the bagels have been formed, they are loaded onto refrigerated trucks for shipping to individual stores. v. After bagels have risen at the stores, they are boiled in a kettle of water and malt for 1 minute. vi. Bagels get baked for 15 minutes.
vii. Bagels are inspected for perfect shapes by employees, those that are deformed get shipped back to the processing plant to be turned into bagel chips to sell at the stores. viii. Perfect bagels get sold.
3. Inventory models:
a. For ordering of ingredients: I would suggest a Perpetual...
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