Business is booming at the cookie company. You are selling only online and have a factory in the southern US. You now offer 5 different kinds of cookies in various size packages and have started selling custom cookie bouquets. Corporate sales are a significant portion of your business as well as fund raising for nonprofit organizations. You attended a lean manufacturing conference and are contemplating how lean manufacturing concepts might be implemented into your systems.
Answer the following questions about your cookie company:
Draw a general supply chain and value chain for your company.
Give a list of value and non-value added activities and costs for your company.
Give 2 examples of activities for each cost hierarchy category in Activity Based Costing and a cost driver for each activity.
Explain how use of Lean and ABC might improve the efficiency within your organization.
How might backflush costing improve efficiency.