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Copper Kettle Catering.
Copper Kettle Catering. See attached file for full problem description.CASE COPPER KETTLE CATERINGpreparation of multiple orders. The deliver-only orders arescheduled day to day owing to the short-order lead times.CKC sometimes runs out of ingredients for deliver-onlymenu items because of the limited inventory space.Wayne and Janet Williams have 10 full-time employees:two cooks and eight food preparation workers, who alsowork as servers for the deliver-and-serve orders. In periodsof high demand, the Williamses hire additional part-timeservers. The position of cook is specialized and requires ahigh degree of training and skill. The rest of the employeesare flexible and move between tasks as needed.The business environment for catering is competitive.The competitive priorities are high-quality food, deliveryreliability, flexibility, and cost--in that order. "The qualityof the food and its preparation is paramount," statesWayne Williams. "Caterers with poor-quality food willnot stay in business long." Quality is measured by bothfreshness and taste. Delivery reliability encompasses bothon-time delivery and the time required to respond to cus-tomer orders (in effect, the order lead time). Flexibilityfocuses on both the range of catering requests that a com-pany can satisfy and menu variety.Recently, CKC has begun to feel the competitive pres-sures of increasingly demanding customers and severalnew specialty caterers. Customers are demanding moremenu flexibility and faster response times. Small specialtycaterers have entered the market and have targeted specificwell-defined market segments. One example is a smallcaterer called Lunches-R-US, which located a facility in themiddle of a large office complex to serve the lunch tradeand competes with CKC on cost.Wayne and Janet Williams have been impressed by theconcepts of just-in-time operating systems, especially theideas of increasing flexibility, reducing lead times, and low-ering costs. They sound like what CKC needs to do toremain competitive. But the Williamses wonder whether JITconcepts and practices are transferable to a service business.area, a sandwich preparation area, and an assembly areaQuestionsorders are assembled and trayed. Three walk-in coolers1. Are the operations of Copper Kettle Catering con-store foods requiring refrigeration, and a large pantryducive to the application of JIT concepts and practices?houses nonperishable goods. Space limitations and the riskExplain.of spoilage limit the amount of raw materials and pre-2. What, if any, are the major barriers to implementingpared food items that can be carried in inventory at anya JIT system at Copper Kettle Catering?one time. CKC purchases desserts from outside vendors.3. What would you recommend that Wayne and JanetSome deliver the desserts to CKC; others require CKC toWilliams do to take advantage of JIT concepts in oper-send someone to pick up desserts at their facilities.ating CKC?The scheduling of orders is a two-stage process. EachMonday, the Williamses develop the schedule of deliver-and-serve orders to be processed each day. CKC typicallySource: This case was prepared by Dr. Brooke Saladin, Wake ForestUniversity, as a basis for classroom discussion.
