Summary

This case introduces, Our Daily bread, a company engaged in the manufacture and distribution of various kinds of breads forthe customers in the market. Furthermore, it can be evaluated that, the company was established by the Malcolm’s, a married couple, in the year 1997, through the vision of Alice Malcolm and the drive and support of her husband, Dan Malcolm. However, the case illustrates a situation in which, a large potential wholesale account had just refused their bid to deliver one-pound loaves of their peasant white bread at $2.25 a loaf and instead the potential client countered the offer at $1.25 a loaf.The company would have to fulfill the demand of two-hundred loaves per week. Therefore, it can be evaluated that, the couple was faced with a tough decision, regarding the future prospect of the offer and whether they would be able to fulfill such a large quantity order. The result of this decisioncould enhance their position in the market and propel them towards growth and prosperity.

Our Daily Bread Company Harvard Case Solution & Analysis

Calculate the capacity utilization for the critical resources in ODB's production process.

It can be evaluated from the analysis conducted in the excel exhibits that the total number hours available per week in the company amounts to 240. This calculation was conducted after identifying the number of employees available in the company and the number of hours they worked in a day per week. This, in turn, could be used to calculate the capacity utilization, after identifying theused number of batches produced for each products, categorized under Breads and all other products. Through which, the total time consumed (In minutes) was calculated with respect to the products batches produced under both categories. Then, the total time (In minutes) could be used to calculate the total time (in hours) by dividing it by 60, the number of minutes present in an hour. Additionally, the total time in hours could be multiplied to the number of batches produced for each product, under different categories, to determine the time consumed to produce average batches per week. Furthermore, the total number of actual hours consumed to produce all batches of breads amounts to 203.3and the total hours consumed to produce all batches of all other products amounts to 102.83. However, two alternative situations are considered, while calculating the capacity utilizationof the two categories. Firstly, it was assumed that, the company would produce all batches of breads only under the total hours available in a week, which amounts to 84.71%. Secondly, it was assumed that, the company decides to produce all batches of all other products only under the total amounts of hours present, which would amount to 42.85%. Therefore, it can be determined that, if the decides to go with the first scenarios, then it would be utilizing 84.71% of its production capacity and if it decides to go with the second scenario, then it would be utilizing only 42.85% of its total production capacity in a week. Lastly, it was evaluated that, if the company decided to produce all batches of both categories than, it would over-utilize its production capacity by 27.6% in a week.......................

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