Inventory Management Assignment: Just Baked

Added on - 06 Jun 2020

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Inventory Management
Table of ContentsINTRODUCTION...........................................................................................................................1Key Questions answered in the report.............................................................................................1Methods of Analysis.......................................................................................................................1Analysis............................................................................................................................................31. Best Service Level at each Just Baked store................................................................................42. Exposure period...........................................................................................................................63. Stock-out and Holding costs, cake mix for baking.....................................................................64. Target stock and ordering decisions...........................................................................................75. Ordering eggs..............................................................................................................................7Conclusion.......................................................................................................................................7
INTRODUCTIONJust Baked is an upscale and popular cupcake pastry kitchen headquartered in Livonia, Michigan. JustBaked got established by Pam Turkin's kitchen when she started to make more cupcakes for her kids. Most storesare claimed and worked by franchisees, however a couple are owned by the organization itself. The present reportwill analyse overall inventory management in Just Baked, which helps them to improve their productivity andperformance.Key Questions answered in the reportDetermine the Best service level at each store of Just Baked.What is the exposure period for cake mix for Baking?What is Holding and Stock-out costs in Cake mix for Baking ?What is the target stock and factors which are affecting ordering decisions?Calculate the process of ordering eggs in Just Baked.Methods of AnalysisIn order to answer the above key questions related to the report various themes are developed for each ofthe question. The themes are segmented into five parts such asBest Service Level at each Just Bakes store.Exposure Period, Cake Mix for Baking.Stock-out and Holding Costs, Cake Mix for Baking.Target Stock and Ordering Decisions, Cake Mix for Baking.Ordering Eggs1. Best Service Level at each Just Baked storeBest services level refers to the level pf services as expected by the Just baked as well asits franchisees in inventory management. The services related to inventory management are veryimportant for stocking of cakes in the company as well as the stores. This theme is furtherdivided into various parts -Cost of under-stocking - Cu =p – cCost of overstocking - c – sFranchisee Best Service Level Computation - SL* = Cu / (Cu + Co)Company-owned store Best Service Level Computation - Cu / (Cu + Co)Decision-making for store level inventory lead to higher overall profitability2.Exposure Period, Cake Mix for Baking.1
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