Operations Management: An Integrated Approach, 5th Edition

CASE: Biddy's Bakery (BB)

Biddy's Bakery was founded by Elizabeth McDoogle in 1984. Nicknamed “Biddy,” Elizabeth started the home-style bakery in Cincinnati, Ohio, as an alternative to commercially available baked goods. The mission of Biddy's Bakery was to produce a variety of baked goods with old-fashioned style and taste. The goods produced included a variety of pies and cakes and were sold to the general public and local restaurants.

The operation was initially started as a hobby by Elizabeth and a group of her friends. Many of the recipes they used had been passed down for generations in their families. The small production and sales facility was housed in a mixed commercial and residential area on the first floor of “Biddy's” home. Elizabeth (“Biddy”) and three of her friends worked in the facility from 6 a.m. to 2 p.m. making and selling the pies. The operation was arranged as a job shop with workstations set up to perform a variety of tasks as needed. Most of the customers placed advanced orders, and Biddy's Bakery took pride in accepting special requests. The bakery's specialty was the McDoogle pie, a rich chocolate confection in a cookie crust.

Meeting Capacity Needs

Initially sales were slow, and there were periods when the business operated at a loss. However, after a few years Biddy's Bakery began to attract a loyal customer following. Sales continued to grow slowly but steadily. In 1994 a first floor storage area was expanded to accommodate the growing business. However, ...