Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Problem #1

Inventory Management

Classic Coffee Cake:

-Constant Annual Demand

-Each case has 72 pastries and one case is ordered each week.

-Within the case the pastries come in packages of 6.

-Starbucks’ records indicate they use 42 of the 72 cakes a week.

-30 pastries remain on hand in case of unexpected demand.

EOQ Model:

  • 416 Individual Coffee Cakes

5.8 Cases

  • The new EOQ would increase the order cycle to 9.9 weeks

Current Model

Advantages:

Simple, so it's less time consuming.

Order flexibility that can be received within the same week.

Disadvantages:

Not as cost effective as it could be under the EOQ Model.

EOQ Model:

Disadvantages:

Advantages:

Impractical!

$1100 increased revenue just from coffee cake

EOQ is Impractical Because:

Storage space within the freezer is limited

Coffeecake is not the only pastry offered!

Problem #2

Location, Layout & Process Choice

We interviewed the

Starbucks in the Lakeway Fred Meyers

A Brief History:

Starbucks offers a wide variety of products and services that extend beyond making coffee beverages.

  • The first Starbucks opened in Seattle, on March 30, 1971
  • Currently Starbucks is present in more than 55 countries with 17,000 stores.
  • In April 2003, Starbucks purchased Seattle's Best Coffee.

Lakeway Store is Unique!

  • It is licensed within Fred Meyer
  • Different Layout
  • Line Flow System

Advantages:

Because of its location, this store is one of the highest volume Starbucks in the area.

Disadvantages:

  • One register and no drive through.
  • Lack of freezer storage space.

Recommendations:

-Decreased Packaging Size From 6 to 4

-More Storage Space

-Addition of Another Register & Espresso Machine

Conclusion:

If Starbucks implements our reccomendations they would see:

  • Decreased annual costs
  • Increased Storage Space
  • Increased Capacity
  • Increased Revenues

Enjoy!

Kevin Aubert, Meghan Blue, Natalie Howard, Shelby Murray, Katie Osman, Kristia Peschka, Kent Sanner & Kayla Tostberg

Learn more about creating dynamic, engaging presentations with Prezi