Breu Ggers

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  • 8/10/2019 Breu Ggers



    Presented by

    Shashi Kant Singh(pb1336)

    Ramakrishna gudi(pb13)

    Mittai sreelekha(pb13)

    Shravya (pb13)

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    Introduction of case

    Analysis of the case

    Recommended solution for the question

    Use of tools and techniques for the solution


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    The case deals with the BRUEGGERS BAGEL BAKERY

    This company sells a large variety of the bagels.

    The bagel business is worth 3 billion.

    The brueggers bagel bakery is a chain bakery store having 450 stores.

    Most of which are having a turnover of 8,00,000.

    The company carries out the initial processing step at its plant location

    while the final step of processing is done at respective stores.

    While the other companies in the industry are suffering from deflation in

    revenue due to poor management BRUEGGERS BAGEL BAKERY is doing

    well because of efficient management and its delivering quality products

    and high quality service.

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    The BRUEGGERS BAGEL BAKERY produces bagels of different shape,

    size and taste(flavour).

    While the manufacturing cost of single bagel is only 10 and selling price

    is up to 50.

    Thus having a high profit margin. The organisation maintains high quality product by regulating the process

    of manufacturing of bagel carefully at each step.

    It operates at minimal inventory.

    The company has hired skilled labour force.

    The company provides training for employees.

    Minimal wastage of resources.

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    Solutions to the problems

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    1Q) Brueggers maintains relatively little inventory at either its

    plants or its retail stores. List the benefits and risks of this



    1.Least investment 1.Inability to meet high demand.

    2.Minimal storage facility. 2.High cost of production.

    3.Easier organisation of resources. 3.Unstanderdization of products

    increase the capital.

    4.Minimum wastage. 4.High transportation cost.

    5.Fresh products can be delivered to

    the customers.

    5.Breakage in supply chain can lead

    to unavailability of the stock.

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    Q2: Quality is very important to Brueggers.

    a) What features of bagels do customer look at to judge their

    quality of bagels?

    Ans: Customers judge the quality by the following factors:

    a) Appearances




    b) Taste

    c) Consistency

    d) Service

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    b) At what point in the production process do worker check bagel


    Ans: a) Choosing suppliers for the ingredients .

    b) Monitoring the process at each step.

    c) Keeping equipment's in good working conditions.

    d) Watch for deformed bagels and remove them if any.

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    Basic ingredientsare mixedtogether

    Proper ratio of ingredients

    Good quality of ingredients

    Dough aretransferred to


    Cleanliness of machines

    Shape of bagel should be maintained

    Shipping to stores Packing should be done properly Temperature should be maintained while transportation


    Proper handling

    Boiling and bakingof bagel

    Temperature maintenance


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    3) Which inventory model could be used for ordering the ingredients

    for bagels? which model do you think would be most appropriatefor deciding how many bagels to make in a given batch.

    Ans: The inventory model used can be:

    a) Economic order quantity (EOQ)

    b) replenishment model

    1. Safety calculation

    2. Reorder point

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    4) Brueggershas bagel making machine at its plants. Another possibility

    would be to have a bagel making machine at each store, what

    advantage does each alternative have?

    Ans: (a) Advantage of having machine at main plant

    a) less investment

    b) Proper utilization of manpower

    c) Less tools required

    d) Recipe secret can be maintained

    e) Quality, shape & size can be maintained

    f) Inventory maintainance at single point/location

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    (b) Advantage of having machines at every retail stores:

    a) Time saving.

    b) Transportation cost goes down.

    c) Reduced wastage and damages.

    e) Can meet any demand of customer at short notice.

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    1) Just in time

    2) Quality control

    3) Inventory management

    4) waste management(minimizing muda)

    5) Economic order quantity

    6) Replenishment model

    Reorder point and

    Safety calculation

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    Maintaining high quality product.

    Less inventory should be maintained.

    Customer oriented.

    Proper training to employees

    Regular maintenance of machines .

    Inspection should be done from time to time at every step of

    the process to reduce muda.

    Forecasting the demand.

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