Operations Management the Cookie Production Thesis

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The need for being demand driven (Barrett, 2007) is what forces the company to carry as minimal a level of inventories as possible. This also supports their strategy of focusing on maximizing inventory turns as well, hence the decision to move their suppliers closer to them. All of these strategies are focused on becoming more demand-driven, creating a Demand Driven Supply Network (DDSN) (Barrett, 2007) as a result.

The most important aspects of cookies purchased are their taste, freshness and being completely packed and in one piece.

The advantages of not using preservatives is the reduction in cost structures due to not having to purchase this raw material, a more simplified production process, and the creation of a unique taste. The disadvantages are that their inventory management and distribution management strategies must focus on making deliveries as rapidly as possible in order to retain the freshness of the cookies once they get into the stores.

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The company's strategy concentrates on creating a high-quality cookie that is sold throughout New York, New Jersey and Connecticut, stressing their high quality and unique fresh taste. Their largest customer segments are adults with a media age of 45 years and families with children. Home Style Cookies differentiates its business strategy by concentrating on quality over quantity, and works to create a unique purchasing and consuming experience for its customers by concentrating on only the highest-quality ingredients. More of a niche-based strategy vs. one that concentrates on premium pricing, Home Style Cookies as defined a unique market position amidst much larger competitors. To retain this competitive position it must continue to invest in the quality management aspects of their production workflows while looking for sourcing, procurement and supply chain efficiencies when possible......

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