Case Questions

1. As-Is Situation: What is the current annual cost of serving all the shops from the Mentone baking plant?

2. Scenario A: Assuming you were Mitchell and that the Mentone baking plant must be kept but not necessarily making both breads and cakes, would you recommend adding any new baking plant  for  the  next  three  years? Why?  If  so, where  should  the  new plants  be  built, what  production  lines  should  be  included  and  how  should  the  shops  be  served  by  the existing and  the new baking plants? Make your  recommendations on a year-by-year-basis (starting from next year).

3. Scenario B: If you could design a new network from scratch (assuming you had the choice of keeping or not keeping the existing baking facility at Mentone), what production network would  you  recommend  and  how  should  the  shops  be  served  by  the  new  baking  plants? Again, make your recommendations on a year-by-year-basis (starting from next year).

4. Scenario C: If you were required to set up only one production line at each baking plant (i.e.,  either  baking  breads  or  pies  but  not  both),  and  assuming  you  could  design  a  new network  from  scratch  as  you  did  in  Question  3,  what  production  network  would  you recommend and how  should  the  shops be  served by  the new baking plants? Again, make your recommendations on a year-by-year-basis (starting from next year).

5. Action Plan: Taking into account the construction costs of the new plants and the scrape value  of  the  existing  plant  and  assuming  the  demand  for  breads  and  pies  will  become stabilized  in  three years, what  is  the network configuration you would  recommend  for Oz Bread  for  the  long  run  and  how  should  the  shops  be  served  by  the  new  baking  plants? Analyze  the  total  costs  involved  under  the  three  scenarios  taking  into  account  the construction  cost  of  the  new  plants  and  the  scrap  value  of  the  existing  baking  facility  at Mentone.  For simplify reason, net present value, inflation, and depreciation, etc.  can be ignored  in  the  calculation.  Upon the analysis, generate an action plan for your final recommendation on a year-by-year basis from Year 0 to Year 3 assuming the current year is Year 0, i.e., what should Oz Bread do at the beginning of Years 0, 1, 2 and 3, if any.

2000 words

10 references.

Attachment:- Case.rar