The accidental baker Mamello Morongwe, a certified food technologist was working on a biscuit recipe for her employer, a leading biscuit manufacturer, when she discovered a muffin recipe. The employer expressed no interest in pursuing this segment of the market and gave Mamello the clearance to use the recipe in her private capacity for personal benefit, as part of their employee development program. After utilising this recipe to bake muffins for special events only, which she distributed over weekends, Mamello finally resigned from her job and is now pursuing her business on a full-time basis – her former employer is now a customer and has placed a full-year weekly order for 20 dozens of muffins every Friday. Armed with a business plan and registration documents for her business, Muffin Boffin, Mamello feels ready to take the country by storm. Q.1. Define ordering costs and make a recommendation on how Muffin Boffin should manage them to ensure profitability. Q.2. Industry pressures, as discussed above, force businesses to be vigilant of operational costs. Discuss below  trends in storage, which the Muffin Boffin business should adopt, to ensure effective and efficient storage of materials. Use practical examples to substantiate your answer. 1. Barcoding and scanning technology  2. Material handling technology  3. Outsourcing  4. New tec

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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The accidental baker

Mamello Morongwe, a certified food technologist was working on a biscuit recipe for her employer, a leading biscuit manufacturer, when she discovered a muffin recipe. The employer expressed no interest in pursuing this segment of the market and gave Mamello the clearance to use the recipe in her private capacity for personal benefit, as part of their employee development program.

After utilising this recipe to bake muffins for special events only, which she distributed over weekends, Mamello finally resigned from her job and is now pursuing her business on a full-time basis – her former employer is now a customer and has placed a full-year weekly order for 20 dozens of muffins every Friday. Armed with a business plan and registration documents for her business, Muffin Boffin, Mamello feels ready to take the country by storm.

Q.1. Define ordering costs and make a recommendation on how Muffin Boffin should manage them to ensure profitability.

Q.2. Industry pressures, as discussed above, force businesses to be vigilant of operational costs. Discuss below  trends in storage, which the Muffin Boffin business should adopt, to ensure effective and efficient storage of materials. Use practical examples to substantiate your answer.

1. Barcoding and scanning technology 

2. Material handling technology 

3. Outsourcing 

4. New tec

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