Assignment

Overview:

Business is booming at the cookie company. You are selling only online and have a factory in the southern US. You now offer 5 different kinds of cookies in various size packages and have started selling custom cookie bouquets. Corporate sales are a significant portion of your business as well as fund raising for nonprofit organizations. You attended a lean manufacturing conference and are contemplating how lean manufacturing concepts might be implemented into your systems.

Deliverables: This is an individual assignment. You will not be working with your team this week.

Answer the following questions about your cookie company:

1. Draw a general supply chain and value chain for your company (review textbook chapter 1).
2. Give a list of value and non-value added activities and costs for your company.
3. Give 2 examples of activities for each cost hierarchy category in Activity Based Costing and a cost driver for each activity.
4. Explain how use of Lean and ABC might improve the efficiency within your organization.
5. How might backflush costing improve efficiency.