If I try to start this business on my own, it will require investing more of my precious time. I will have to do the cooking, washing up, filling the boxes and getting the payment. I should also invest more money as I will have to buy all the equipment. The good news is that I will receive all the profit. The delivery option will be impossible.
It is possible to fulfill rush orders as it may help gain more loyal customers. Thus, loyal customer (those who place a certain number of orders) will have an opportunity to put a ‘crash priority order’. However, it is necessary to charge extra payment. This can be an increase by 50%. Clearly, if such an order is placed when another portion is in the oven, the cookies in the oven will be baked properly. During this time, a new portion (in accordance with the order) can be prepared. Another bowl will be necessary to be able to fulfill two orders almost simultaneously as the dough for the former order will be in the bowl until put in the oven.
Using instant messengers can be an effective way to arrange communication. It is possible to develop a standard message where the time is inserted each time. This will be much more effective than calling customers. It is also possible to offer delivery when the order is more than two dozen cookies. This will help win loyal customers as well as encourage people to order more. At that, the delivery point should be within 10-minute reach.
The roomie may deliver the cookies while I will perform all the activities up to the packing, which makes up about 20 minutes. Thus, the roommate will have approximately 10 minutes to reach the customer, one minute to get the payment and 10 minutes to come back.
Jacobs and Chase (2014) note that it is essential to include as many details into the plan as possible, although it is clear that certain amendments will occur afterward. Apart from considering time necessary to fill orders, prices, possible discounts and delivery options, it can be a good idea to analyze the availability of ingredients and storage place. Each day, all the necessary ingredients for cookies (including ‘specialties’) should be available. When calculating, it is essential to assume that all the orders for the night will include one particular ‘specialty.’ Opening hours should also be considered. It is possible to analyze such periods as 8 p.m. till midnight and 5 a.m. till 7.30 a.m.
Clearly, standard cookies may partially lose the competitive advantage. However, they will still be popular among students as they will be completely fresh. The production process will remain almost unchanged. The mixing part may be reduced as there will be no need to add some ingredients. As for the order-taking process, it may be changed. More orders can be filled as the mixing time will be significantly reduced since three portions can be produced each time. Thus, filling an order for three dozen will take 46 minutes. At that, the next portion can be mixed immediately as only standard ingredients are used. Basically, there is no need to wait until particular orders are placed as the only difference will be the number of cookies.
Reference List
Jacobs, F.R., & Chase, R.B. (2014). Operations and supply chain management. New York, NY: McGraw Hill.