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    Bagel Bakery

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    nandish73
    Bruegger's bagel bakery is a $3 billion industry in India and the top bagel seller nationally with over 450 shops. It generates annual sales of $8 million per store by selling bagels, coffee, and sandwiches. Bagels have high profit margins as they cost $0.10 to make but are sold for $0.50 each. The bakery maintains minimal inventory to reduce costs and respond quickly to customer demand while ensuring fresh products. It uses an economic production lot size model to determine ordering quantities and schedules for ingredients to match constant bagel demand. Quality control is also important throughout production to meet customer expectations.

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    © All Rights Reserved
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    Bagel Bakery

    Uploaded by

    nandish73
    506 views16 pages
    Bruegger's bagel bakery is a $3 billion industry in India and the top bagel seller nationally with over 450 shops. It generates annual sales of $8 million per store by selling bagels, coffee, and sandwiches. Bagels have high profit margins as they cost $0.10 to make but are sold for $0.50 each. The bakery maintains minimal inventory to reduce costs and respond quickly to customer demand while ensuring fresh products. It uses an economic production lot size model to determine ordering quantities and schedules for ingredients to match constant bagel demand. Quality control is also important throughout production to meet customer expectations.

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    about bakel bakery

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    Bruegger's bagel bakery is a $3 billion industry in India and the top bagel seller nationally with over 450 shops. It generates annual sales of $8 million per store by selling bagels, coffee, and sandwiches. Bagels have high profit margins as they cost $0.10 to make but are sold for $0.50 each. The bakery maintains minimal inventory to reduce costs and respond quickly to customer demand while ensuring fresh products. It uses an economic production lot size model to determine ordering quantities and schedules for ingredients to match constant bagel demand. Quality control is also important throughout production to meet customer expectations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    506 views16 pages

    Bagel Bakery

    Uploaded by

    nandish73
    Bruegger's bagel bakery is a $3 billion industry in India and the top bagel seller nationally with over 450 shops. It generates annual sales of $8 million per store by selling bagels, coffee, and sandwiches. Bagels have high profit margins as they cost $0.10 to make but are sold for $0.50 each. The bakery maintains minimal inventory to reduce costs and respond quickly to customer demand while ensuring fresh products. It uses an economic production lot size model to determine ordering quantities and schedules for ingredients to match constant bagel demand. Quality control is also important throughout production to meet customer expectations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    ANIL KUMAR (PB1308)

    H MAHESH (PB1317)
    MOHAN (PB1341)
    Brueggers bagel bakery makes and sells a
    variety of bagels of which bagels are the main
    source of revenue.
    The bagel business is Rs. 3 billion industry.
    It is no.1 nationally with over 450 shops that sells
    bagels, coffee and bagel sandwiches.
    It generates an average of 8,00,000 sales
    annually for each store.
    Customers are attracted for its taste and quality.
    It is highly profitable business.
    The manufacturing cost of one bagel = 10 Rs.
    The selling price of each bagel = 50 Rs.
    The profit margin per bagel is around 40 Rs.
    The annual average revenue = 8L x
    450 shop
    = 3.6 billion
    Employees who works in the store are carefully
    chosen and trained to operate the necessary
    equipment in stores.
    Maintains minimum inventory.
    1. Benefits and risks of maintaining little
    inventory?

    Ans .Little inventory means reduced cost and
    space
    Better supply chain management
    Eliminates no. of warehouses
    Ability to respond quickly according to customer
    demand
    Fresh products are made for the customers
    Less waste, no or less unsold products
    Reduced holding costs( labor cost, space cost,
    managing cost )
    Cost control and manageable breakeven
    Less record or less inventory data entry work
    The space can be utilize to expand retail stores
    Saves labor time ( stowing, moving food )
    Fast substitute of damaged goods is difficult
    Less discounts for bulk buying
    More time and effort needed to manage the stock
    Production lifecycle can be affected by uncertain
    demands.
    Need good communication with suppliers
    High freight cost for incoming and outgoing
    shipments
    Movement of dead stock also incurs costs
    If deliveries are delayed the business might run out
    of stock.
    Quality is an important feature of a successful
    business.
    Customers judge the quality of bagels by their
    appearance( size, shape, shine ), taste and
    consistency.
    Frequent visiting customers know the taste the
    bagel everyday.
    So little amount of taste variation can be
    identified.


    The production process is a continuous series of
    process
    Quality is the major constraint for the bakery.
    The workers should check the quality at every
    stage of operation

    Types of inventory models that are used for
    ordering the ingredients for bagels are
    EOQ(Economic Order Quantity).
    Economic production lot size model
    An order-quantity , reorder-point model with
    probabilistic demand.



    The most appropriate inventory model for this
    case is Economic production lot size model.
    This model is used when the demand for the
    bagels is almost constant.
    So the inventory required for the day can be
    attained with in the day itself.
    The constant demand rate means the same
    number of units taken from inventory each period
    of time.
    It gives information about
    How much to order?
    When to order?

    Waste management
    Just in Time
    Inventory management which leads to cost
    cutting
    Total quality management
    Quality function deployment.
    Total productive maintenance.


    Customer focused
    Independent functioning
    In case of failure of refrigeration can cause more
    damage
    Concentrate demand for the other available
    flavors subsequently to the traditional bagels

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