Facilities
Snack Planet is located in Orville, Ohio, USA in a shopping mall at the town’s shopping
center. The store has a big bakery setup, an accounts office, a store where the raw ingredients
for production are kept, a fridge, a counter, a cashier machine, coffee maker, seats and tables,
and space where customers can eat when they are not purchasing takeaways. The store’s
space is rented for $1,000 per month. The company incurs different costs on monthly bills
that include water and sewer at $600, gas at $800, electricity at $500, and trash removal at
$200. These costs are variables and change from time to time.
Production Process
The production process for the snacks includes purchasing raw ingredients like corn and
wheat flour, meat, cooking vegetable oil, eggs, and salt. The process starts at the start of
every day with defined proportions set out for every variety of snacks. The dough is prepared
using the different ingredient requirements per snack variety. Using the baking ovens, the
baked snacks like buns are prepared. The associated costs that are incurred during this
process are ingredient, gas, and electricity costs. Afterward, the snacks are packed and put
into the display screen on the counter.
Quality control is a vital process given the priority that the company accords to product
quality. Snack Planet uses the statistical sampling approach in this regard. This approach is
efficient as it saves a lot of time given the significance of that factor in the production
process. The statistical approach means sampling a small portion of the products to measure
quality and the results are used to represent the rest of the products.
The company uses the First in, First out approach for inventory which is commonly referred
to as FIFO. This approach dictates that the first products to be purchased, that is, raw
ingredients, are the first goods to be used. This allows for the reduction in the risk of spoilage
for the goods while in-store. This flow of goods also applies in the sales section where goods
Snack Planet is located in Orville, Ohio, USA in a shopping mall at the town’s shopping
center. The store has a big bakery setup, an accounts office, a store where the raw ingredients
for production are kept, a fridge, a counter, a cashier machine, coffee maker, seats and tables,
and space where customers can eat when they are not purchasing takeaways. The store’s
space is rented for $1,000 per month. The company incurs different costs on monthly bills
that include water and sewer at $600, gas at $800, electricity at $500, and trash removal at
$200. These costs are variables and change from time to time.
Production Process
The production process for the snacks includes purchasing raw ingredients like corn and
wheat flour, meat, cooking vegetable oil, eggs, and salt. The process starts at the start of
every day with defined proportions set out for every variety of snacks. The dough is prepared
using the different ingredient requirements per snack variety. Using the baking ovens, the
baked snacks like buns are prepared. The associated costs that are incurred during this
process are ingredient, gas, and electricity costs. Afterward, the snacks are packed and put
into the display screen on the counter.
Quality control is a vital process given the priority that the company accords to product
quality. Snack Planet uses the statistical sampling approach in this regard. This approach is
efficient as it saves a lot of time given the significance of that factor in the production
process. The statistical approach means sampling a small portion of the products to measure
quality and the results are used to represent the rest of the products.
The company uses the First in, First out approach for inventory which is commonly referred
to as FIFO. This approach dictates that the first products to be purchased, that is, raw
ingredients, are the first goods to be used. This allows for the reduction in the risk of spoilage
for the goods while in-store. This flow of goods also applies in the sales section where goods
