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SWEET TREATS BAKERY (DECEMBER 2016)
Sweet Treats Bakery makes three types of cake: brownies, muffins and cupcakes. The costs,
revenues and demand for each of the three cakes are as follows:
Brownies Muffins Cupcakes
Batch size (units) 40 30 20
Selling price ($ per unit) 1.50 1.40 2.00
Material cost ($ per unit) 0.25 0.15 0.25
Labour cost ($ per unit) 0.40 0.45 0.50
Overheads ($ per unit) 0.15 0.20 0.30
Minimum daily demand (units) 30 20 10
Maximum daily demand (units) 140 90 100
The minimum daily demand is required for a long?term contract with a local café and must
be met.
The cakes are made in batches using three sequential processes: weighing, mixing and
baking. The products must be produced in their batch sizes but are sold as individual units.
Each batch of cakes requires the following amount of time for each process:
Brownies Muffins Cupcakes
Weighing (minutes) 15 15 20
Mixing (minutes) 20 16 12
Baking (minutes) 120 110 120
The baking stage of the process is done in three ovens which can each be used for eight
hours a day, a total of 1,440 available minutes. Ovens have a capacity of one batch per
bake, regardless of product type.
Sweet Treats Bakery uses throughput accounting and considers all costs, other than
material, to be ‘factory costs’ which do not vary with productionOn Monday, in addition to the baking ovens, Sweet Treats Bakery has the following
process resources available:
Process Minutes available
Weighing 240
Mixing 180
Which of the three processes, if any, is a bottleneck activity?
A Weighing
B Mixing
C Baking
D There is no bottleneck
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I don’t understand how did they get for brownies 4 muffins 3 cupcakes 5..
Can u plz explain y did they use this n multiple by minutesPlease do not type out full questions like this because they are copyright of the ACCA and they get annoyed if we post full questions on our website. I have all past exam questions and so you only need to say the name of the question and the date of the exam 🙂
I think one of my previous answers about this question will explain to you. If not then do ask again.
https://opentuition.com/topic/bottleneck-process-3/Am asking for the part 1 of the questions on how to calculate the bottle neck resources…I know how to calculate bottleneck resources but for this question I don’t understand n when I check the answer in Kaplan they have
I don’t understand how did they get for brownies 4 muffins 3 cupcakes 5..
Can u plz explain y did they use this n multiple by minutes….
Can u plz guide on how do I do this question part 1 of bottleneck how mixing is bottleneck …thanksThe cakes all have to be made in batches of 40 (Brownies), 30 (Muffins), and 20 (Cupcakes).
Therefore to meet maximum demand they would have to make 4 batches of Brownies (the cannot make just part of a batch), 3 batches of muffins, and 5 batches of Cupcakes.To do this would need in the weighing process: (4 x 15) + (3 x 15) + (5 x 20 ) = 205 minutes.
If you do the same for the other two processes then mixing would need 188 minutes and baking would need 1,410 minutes.There is enough time available in the weighing process (240 minutes) and enough time in the baking process (1,440 minutes).
However there are only 180 minutes available in the mixing process. Therefore they cannot produce to meet the full demand. It is mixing that is limited the production and therefore mixing that is the bottleneck resource.
Sir, the same question. Part 2- optimum production plan when mixing is the bottleneck. Please provide an easy way to answer. Unable to understand the given solution.
Have you checked out my previous answers to posts about this question?https://opentuition.com/topic/bottleneck-process-3/
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