Bay Area Bakery
Case study #1
Group Members
Kevin Worrell, Asad Khan, Donavan Drewes, Harman Grewal, Sanju Dabi
Discussion Questions
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Question 1
 Agree/disagree with construction of new facility in San Jose
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Question 2
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If we disagree - what actions are necessary
Is the current distribution optimal
Question 3
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Formulate and solve mathematical programming model(s)
Make all necessary assumptions
10 year growth projections
Effects on need for new San Jose facility
Question 4

Additional factors to consider
Discussion Questions

Question 1
 Agree/disagree with new facility in San Jose



Question 2



If we disagree - what actions are necessary
Is the current distribution optimal
Question 3



Formulate and solve a mathematical programming model(s)
Make all necessary assumptions
10 year growth projections
Effects on need for new San Jose facility
Question 4

Additional factors to consider
Discussion Questions

Question 1
 Agree/disagree with new facility in San Jose



Question 2



If we disagree - what actions are necessary
Is the current distribution optimal
Question 3



Formulate and solve a mathematical programming model(s)
Make all necessary assumptions
10 year growth projections
Effects on need for new San Jose facility
Question 4

Additional factors to consider
Discussion Questions

Question 1
 Agree/disagree with new facility in San Jose



Question 2



If we disagree - what actions are necessary
Is the current distribution optimal
Question 3



Formulate and solve a mathematical programming model(s)
Make all necessary assumptions
10 year growth projections
Effects on need for new San Jose facility
Question 4

Additional factors to consider
Project Assumptions

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
Jan 1, 2006 to Dec 31, 2006 is current operating year with current operating
QTY and is the baseline position of the Bakery operation.
Assume Jan 1, 2007 is the first day the San Jose Plant can come online.
Recognize San Jose plant savings on December 31st of the year
Builder has San Jose plant ready for operation and gets paid the $4,000,000 on
January 1 of that year.
Bakery corporation has $4,000,000 in liquid asset reserves therefore the money
is interest free.
Current operation cost is flat and production cost includes all the overhead
production costs (e.g. equipment maintenance, facilities, wages etc).
Roadmap approach with an intention to operate up and beyond 10yrs
Products are priced in market such that we make same profit always despite of
inflation and increased taxes
Mathematical Model
Let’s assume BN is the bakery plant of origin, and DN is the bakery destination
for major market areas:
Santa
Rosa
Sacramento
Richmond
San
Francisco
Stockton
Santa Cruz
San Jose
B1
B2
B3
B4
B5
B6
B7
Bakery of Origin
Major Market
Areas
Santa
Rosa
Scrmnto
Rchmd
Brkly
Okld
San Fran
San
Jose
Santa
Cruz
Slns
Stckt
Mdst
D1
D2
D3
D4
D5
D6
D7
D8
D9
D10
D11
Mathematical Model (Cont.)
Based on the data from Table 3 and Table 1 the minimization equation for
LINDO comes out to be as follows:
MIN
Pa1 B1D1 +…+ Pa11 B1D11 + Pb1 B2D1 + …+ Pb11 B2D11 + Pc1 B3D1 +…+ Pc11 B3D11 + Pd1 B4D1 + …
+ Pd11 B4D11 + Pe1 B5D1 +…+ Pe11 B5D11 + Pf1 B6D1 +…+ Pf11 B6D11 + {Pin B7Dnn}
The above equation is shown with San Jose (in bold). Where Pin is the total cost associated for
delivering products from bakery of origin to major market areas. This total cost is calculated as the
sum of baking cost and delivery cost as follows:
Pin = Baking cost from the bakery of origin + Delivery cost to the major market areas
Mathematical Model (Cont.)
The constraint equations for LINDO are as follows:
The following equations are derived from the fact that a particular bakery can supply to major
market areas with the consideration of capacity (Table 1 and Table 3):
•B1D1 + …+ B1D11 <= 500
•B2D1 + …+ B2D11 <= 1000
•B3D1 +…+ B3D11 <= 2700
•B4D1 +…+ B4D11 <= 2000
•B5D1 +…+ B5D11 <= 500
•B6D1 +…+ B6D11 <= 800
•{B7D1 +…+ B7D11 <= 1200}
The bold equation is added for the construction of San Jose bakery.
Mathematical Model (Cont.)
Second set of constraint equations for LINDO are:
Following equations are derived by the fact that the bakeries are supplying a major market area with the
consideration of demand over N years. Where Gx is the demand over N years based on the 10% increase
for a particular bakery of origin.
•B1D1 +…+ B6D1 {+B7D1} >= Ga
•B1D2 +…+ B6D2 {+B7D1} >= Gb
•B1D3 +…+ B6D3 {+B7D1} >= Gc
•B1D4 +…+ B6D4 {+B7D1} >= Gd
•B1D5 +…+ B6D5 {+B7D1} >= Ge
•B1D6 +…+ B6D6 {+B7D1} >= Gf
•B1D7 +…+ B6D7 {+B7D1} >= Gg
•B1D8 +…+ B6D8 {+B7D1} >= Gh
•B1D9 +…+ B6D9 {+B7D1} >= Gi
•B1D10 +…+ B6D10 {+B7D1} >= Gj
•B1D11 +…+ B6D11 {+B7D1} >= Gk
The bold equation is added for the construction of San Jose bakery.
Mathematical Model (Cont.)
The LINDO equations for current year are as follows:
MIN 21 B1D1 + 22.9 B1D2 + 21 B1D3 + 21 B1D4 + 21.2 B1D5 + 21.2 B1D6 + 22.7 B1D7 + 23.8 B1D8 + 24.6 B1D9 + 22.7 B1D10 + 23.8 B1D11
+ 21.4 B2D1 + 18.5 B2D2 + 19.4 B2D3 + 19.4 B2D4 + 19.6 B2D5 + 19.8 B2D6 + 20.9 B2D7 + 22 B2D8 + 22.6 B2D9 + 19.5 B2D10 + 20.6 B2D11
+ 19.2 B3D1 + 18.9 B3D2 + 17 B3D3 + 17 B3D4 + 17.2 B3D5 + 17.4 B3D6 + 18.5 B3D7 + 19.6 B3D8 + 20.2 B3D9 + 19.1 B3D10 + 20 B3D11
+ 20.2 B4D1 + 20.6 B4D2 + 18.4 B4D3 + 18.4 B4D4 + 18.2 B4D5 + 18 B4D6 + 19.5 B4D7 + 20.6 B4D8 + 21.4 B4D9 + 20.1 B4D10 + 21 B4D11
+ 22.2 B5D1 + 20.5 B5D2 + 20.6 B5D3 + 20.6 B5D4 + 20.6 B5D5 + 20.8 B5D6 + 20.9 B5D7 + 22 B5D8 + 22.6 B5D9 + 19.5 B5D10 + 20.6 B5D11
+ 25.8 B6D1 + 25.5 B6D2 + 23.6 B6D3 + 23.6 B6D4 + 23.4 B6D5 + 23.6 B6D6 + 23.1 B6D7 + 23 B6D8 + 23.8 B6D9 + 24.5 B6D10 + 25.2 B6D11
SUBJECT TO
B1D1 +…+ B1D11 <= 500
B2D1 +…+ B2D11 <= 1000
B3D1 +…+ B3D11 <= 2700
B4D1 +…+ B4D11 <= 2000
B5D1 +…+ B5D11 <= 500
B6D1 +…+ B6D11 <= 800
LP OPTIMUM FOUND AT STEP: 15
OBJECTIVE FUNCTION VALUE: $99,770
B1D1 +…+ B6D1 >= 300
B1D2 +…+ B6D2 >= 500
B1D3 +…+ B6D3 >= 600
B1D4 +…+ B6D4 >= 400
B1D5 +…+ B6D5 >= 1100
B1D6 +…+ B6D6 >= 1300
B1D7 +…+ B6D7 >= 600
B1D8 +…+ B6D8 >= 100
B1D9 +…+ B6D9 >= 100
B1D10 +…+ B6D10 >= 400
B1D11 +…+ B6D11 >= 100
END
Mathematical Model (Cont.)
The LINDO equation for current year with San Jose is:
MIN 21 B1D1 + 22.9 B1D2 + 21 B1D3 + 21 B1D4 + 21.2 B1D5 + 21.2 B1D6 + 22.7 B1D7 + 23.8 B1D8 + 24.6 B1D9 + 22.7 B1D10 + 23.8 B1D11
+ 21.4 B2D1 + 18.5 B2D2 + 19.4 B2D3 + 19.4 B2D4 + 19.6 B2D5 + 19.8 B2D6 + 20.9 B2D7 + 22 B2D8 + 22.6 B2D9 + 19.5 B2D10 + 20.6 B2D11
+ 19.2 B3D1 + 18.9 B3D2 + 17 B3D3 + 17 B3D4 + 17.2 B3D5 + 17.4 B3D6 + 18.5 B3D7 + 19.6 B3D8 + 20.2 B3D9 + 19.1 B3D10 + 20 B3D11
+ 20.2 B4D1 + 20.6 B4D2 + 18.4 B4D3 + 18.4 B4D4 + 18.2 B4D5 + 18 B4D6 + 19.5 B4D7 + 20.6 B4D8 + 21.4 B4D9 + 20.1 B4D10 + 21 B4D11
+ 22.2 B5D1 + 20.5 B5D2 + 20.6 B5D3 + 20.6 B5D4 + 20.6 B5D5 + 20.8 B5D6 + 20.9 B5D7 + 22 B5D8 + 22.6 B5D9 + 19.5 B5D10 + 20.6 B5D11
+ 25.8 B6D1 + 25.5 B6D2 + 23.6 B6D3 + 23.6 B6D4 + 23.4 B6D5 + 23.6 B6D6 + 23.1 B6D7 + 23 B6D8 + 23.8 B6D9 + 24.5 B6D10 + 25.2 B6D11
+ 21.2 B7D1 + 20.9 B7D2 + 19 B7D3 + 19.0 B7D4 + 18.8 B7D5 + 19.0 B7D6 + 18.5 B7D7 + 19.6 B7D8 + 20.2 B7D9 + 19.9 B7D10 + 20.6 B7D11
SUBJECT TO
B1D1 +…+ B1D11 <= 500
B2D1 +…+ B2D11 <= 1000
B3D1 +…+ B3D11 <= 2700
B4D1 +…+ B4D11 <= 2000
B5D1 +…+ B5D11 <= 500
B6D1 +…+ B6D11 <= 800
B7D1 +…+ B7D11 <= 1200
B1D1 +…+ B7D1 >= 300
B1D2 +…+ B7D2 >= 500
B1D3 +…+ B7D3 >= 600
B1D4 +…+ B7D4 >= 400
B1D5 +…+ B7D5 >= 1100
B1D6 +…+ B7D6 >= 1300
B1D7 +...+ B7D7 >= 600
B1D8 +...+ B7D8 >= 100
B1D9 +…+ B7D9 >= 100
B1D10 +…+ B7D10 >= 400
B1D11 +…+ B7D11 >= 100
END
LP OPTIMUM FOUND AT STEP: 12
OBJECTIVE FUNCTION VALUE: $99,090
Mathematical Model (Cont.)
The LINDO equation for year 1 without San Jose is:
MIN 21 B1D1 + 22.9 B1D2 + 21 B1D3 + 21 B1D4 + 21.2 B1D5 + 21.2 B1D6 + 22.7 B1D7 + 23.8 B1D8 + 24.6 B1D9 + 22.7 B1D10 + 23.8 B1D11
+ 21.4 B2D1 + 18.5 B2D2 + 19.4 B2D3 + 19.4 B2D4 + 19.6 B2D5 + 19.8 B2D6 + 20.9 B2D7 + 22 B2D8 + 22.6 B2D9 + 19.5 B2D10 + 20.6 B2D11
+ 19.2 B3D1 + 18.9 B3D2 + 17 B3D3 + 17 B3D4 + 17.2 B3D5 + 17.4 B3D6 + 18.5 B3D7 + 19.6 B3D8 + 20.2 B3D9 + 19.1 B3D10 + 20 B3D11
+ 20.2 B4D1 + 20.6 B4D2 + 18.4 B4D3 + 18.4 B4D4 + 18.2 B4D5 + 18 B4D6 + 19.5 B4D7 + 20.6 B4D8 + 21.4 B4D9 + 20.1 B4D10 + 21 B4D11
+ 22.2 B5D1 + 20.5 B5D2 + 20.6 B5D3 + 20.6 B5D4 + 20.6 B5D5 + 20.8 B5D6 + 20.9 B5D7 + 22 B5D8 + 22.6 B5D9 + 19.5 B5D10 + 20.6 B5D11
+ 25.8 B6D1 + 25.5 B6D2 + 23.6 B6D3 + 23.6 B6D4 + 23.4 B6D5 + 23.6 B6D6 + 23.1 B6D7 + 23 B6D8 + 23.8 B6D9 + 24.5 B6D10 + 25.2 B6D11
SUBJECT TO
B1D1 +…+ B1D11 <= 500
B2D1 +…+ B2D11 <= 1000
B3D1 +…+ B3D11 <= 2700
B4D1 +…+ B4D11 <= 2000
B5D1 +…+ B5D11 <= 500
B6D1 +…+ B6D11 <= 800
LP OPTIMUM FOUND AT STEP: 16
OBJECTIVE FUNCTION VALUE: $103,457.4
B1D1 +…+ B6D1 >= 306
B1D2 +…+ B6D2 >= 510
B1D3 +…+ B6D3 >= 612
B1D4 +…+ B6D4 >= 408
B1D5 +…+ B6D5 >= 1122
B1D6 +…+ B6D6 >= 1300
B1D7 +…+ B6D7 >= 720
B1D8 +…+ B6D8 >= 102
B1D9 +…+ B6D9 >= 102
B1D10 +…+ B6D10 >= 408
B1D11 +…+ B6D11 >= 102
END
Mathematical Model (Cont.)
The LINDO equation for year 1 with San Jose is:
MIN 21 B1D1 + 22.9 B1D2 + 21 B1D3 + 21 B1D4 + 21.2 B1D5 + 21.2 B1D6 + 22.7 B1D7 + 23.8 B1D8 + 24.6 B1D9 + 22.7 B1D10 + 23.8 B1D11
+ 21.4 B2D1 + 18.5 B2D2 + 19.4 B2D3 + 19.4 B2D4 + 19.6 B2D5 + 19.8 B2D6 + 20.9 B2D7 + 22 B2D8 + 22.6 B2D9 + 19.5 B2D10 + 20.6 B2D11
+ 19.2 B3D1 + 18.9 B3D2 + 17 B3D3 + 17 B3D4 + 17.2 B3D5 + 17.4 B3D6 + 18.5 B3D7 + 19.6 B3D8 + 20.2 B3D9 + 19.1 B3D10 + 20 B3D11
+ 20.2 B4D1 + 20.6 B4D2 + 18.4 B4D3 + 18.4 B4D4 + 18.2 B4D5 + 18 B4D6 + 19.5 B4D7 + 20.6 B4D8 + 21.4 B4D9 + 20.1 B4D10 + 21 B4D11
+ 22.2 B5D1 + 20.5 B5D2 + 20.6 B5D3 + 20.6 B5D4 + 20.6 B5D5 + 20.8 B5D6 + 20.9 B5D7 + 22 B5D8 + 22.6 B5D9 + 19.5 B5D10 + 20.6 B5D11
+ 25.8 B6D1 + 25.5 B6D2 + 23.6 B6D3 + 23.6 B6D4 + 23.4 B6D5 + 23.6 B6D6 + 23.1 B6D7 + 23 B6D8 + 23.8 B6D9 + 24.5 B6D10 + 25.2 B6D11
+ 21.2 B7D1 + 20.9 B7D2 + 19 B7D3 + 19.0 B7D4 + 18.8 B7D5 + 19.0 B7D6 + 18.5 B7D7 + 19.6 B7D8 + 20.2 B7D9 + 19.9 B7D10 + 20.6 B7D11
SUBJECT TO
B1D1 +…+ B1D11 <= 500
B2D1 +…+ B2D11 <= 1000
B3D1 +…+ B3D11 <= 2700
B4D1 +…+ B4D11 <= 2000
B5D1 +…+ B5D11 <= 500
B6D1 +…+ B6D11 <= 800
B7D1 +…+ B7D11 <= 1200
B1D1 +…+ B7D1 >= 306
B1D2 +…+ B7D2 >= 510
B1D3 +…+ B7D3 >= 612
B1D4 +…+ B7D4 >= 408
B1D5 +…+ B7D5 >= 1122
B1D6 +…+ B7D6 >= 1300
B1D7 +…+ B7D7 >= 720
B1D8 +…+ B7D8 >= 102
B1D9 +…+ B7D9 >= 102
B1D10 +…+ B7D10 >= 408
B1D11 +…+ B7D11 >= 102
END
LP OPTIMUM FOUND AT STEP: 12
OBJECTIVE FUNCTION VALUE: $102,634.2
5 Year Analysis Grid
Following is the analysis grid that contains up to 5 yrs with and
without San Jose:
2006
2007
2008
2009
2010
2011
Year from 2006
0
1
2
3
4
5
Santa Rosa QTY
300
306
312
318
324
330
Sacram ento QTY
500
510
520
530
540
550
Richm ond QTY
600
612
624
636
648
660
Berkeley QTY
400
408
416
424
432
440
Oakland QTY
1100
1122
1144
1166
1188
1210
San Francisco QTY
1300
1300
1300
1300
1300
1300
San Jose QTY
600
720
840
960
1080
1200
Santa Cruz QTY
100
102
104
106
108
110
Salinas QTY
100
102
104
106
108
110
Stockton QTY
400
408
416
424
432
440
Modesto QTY
100
102
104
106
108
110
Total QTY
5500
5692
5884
6076
6268
6460
w /o San Jose
$99,770.00
$103,457.00
$111,085.00
$118,933.00
w ith Jose Jose
$99,090.00
$102,634.00
$109,723.00
$117,007.00
$680.00
$823.00
$1,092.50
$1,362.00
$1,644.00
$1,926.00
$248,200.00
$300,395.00
$398,762.50
$497,130.00
$600,060.00
$702,990.00
$300,395.00
$699,157.50
$1,196,287.50
$1,796,347.50
$2,499,337.50
Savings (Day)
Savings (Year)
Savings (Cum )
5 Year Analysis Grid
Bakery Start
Year Bakery
Starts on Jan 1
2007
2008
1 Year Recovery 2007 END
$300,395.00 2008 END
$398,762.50 2009 END
2 Year Recovery 2008 END
$699,157.50 2009 END
$895,892.50 2010 END
3 Year Recovery 2009 END $1,196,287.50 2010 END
$1,495,952.50 2011 END
4 Year Recovery 2010 END $1,796,347.50 2011 END
$2,198,942.50
2009
$497,130.00 2010 END
2010
$600,060.00 2011 END
$1,097,190.00 2011 END $1,303,050.00
$1,800,180.00
5 Year Recovery 2011 END $2,499,337.50
At our projected 5 year term we are unable to recover the $4,000,000
cost of starting a new bakery.
2011
$702,990.00
5 Year Analysis Conclusions





Current distribution is not optimal
It can be improved further as shown in table 1
$3500/day savings
Assumption: Cost of keeping a plant non-operational for
temporary period is negligible)
For current year there is no need to run the Santa Rosa and
Santa Cruz bakeries
5 Year Analysis Conclusions





Current distribution is not optimal
It can be improved further as shown in table 1
$3500/day savings
Assumption: Cost of keeping a plant non-operational for
temporary period is negligible)
For current year there is no need to run the Santa Rosa and
Santa Cruz bakeries
Table 1
Optimal Distribution for Current Scenario
To Major
Market Areas
From Bakery Plant Locations (Quantity in cwt)
Santa
Rosa
Sacramento
Santa Rosa
Sacramento
Richmond
San
Francisco
300
500
Richmond
600
Berkeley
400
Oakland
1100
San Francisco
1300
San Jose
200
Santa Cruz
400
100
Salinas
100
Stockton
Modesto
Stockton
400
100
Current Operation Cost (per day)
: $103,270
Optimal Operation Cost (per day)
: $99,770
Net savings:
$3,500
Santa Cruz
Optimizing Current Operation





Current distribution is not optimal
It can be improved further as shown in table 1
$3500/day
Assumption: Cost of keeping a plant non-operational for
temporary period is negligible)
For current year there is no need to run the Santa Rosa and
Santa Cruz bakeries
Optimizing Current Operation





Current distribution is not optimal
It can be improved further as shown in table 1
$3500/day savings
Assumption: Cost of keeping a plant non-operational for
temporary period is negligible)
For current year there is no need to run the Santa Rosa and
Santa Cruz bakeries
Optimizing Current Operation





Current distribution is not optimal
It can be improved further as shown in table 1
$3500/day savings
Assumption: Cost of keeping a plant non-operational for
temporary period is negligible)
For current year there is no need to run the Santa Rosa and
Santa Cruz bakeries
10 Year Capacity Analysis

Will the Bay Area Bakery have the capacity to meet the
growth projections for the next 10 years?



Bay Area Bakery will reach maximum production limit (7500 units per day)
with current bakery plant capacity starting Jan 1, 2017 (11th year).
Lack of increasing capacity by constructing San Jose plant could realize a
112 cwt loss of market sales potential per day yielding a $122,640.00 loss
in profits for fiscal year 2017 ($3.00 per cwt).
Growth of San Jose market (200%) by 2016 (10th year) is main driver.
Capacity Analysis
10th Year (2016) Shipping Analysis
To Major Market
Areas
Santa Rosa (D1)
From Bakery Plant Locations (Quantity in cwt) (w/o San Jose / with San Jose)
Santa Rosa
(B1)
Sacramento
(B2)
360 / 320
Sacramento (D2)
San Fran
(B4)
Stockton
(B5)
Santa Cruz
(B6)
San Jose
(B7)
0 / 40
Berkeley (D4)
280 / 0
140 / 0
600
720 / 720
720
200 / 480
480
1180 / 1320
1320
San Fran (D6)
1300 / 1300
San Jose (D7)
TOTALS
360
600 / 600
Richmond (D3)
Oakland (D5)
Richmond
(B3)
600 / 140
480 / 0
0 / 960
1800
Santa Cruz (D8)
120 / 0
0 / 120
120
Salinas (D9)
120 / 0
0 /120
120
Stockton (D10)
0 / 280
Modesto (D11)
120 / 120
TOTALS
500 / 320
740 / 1000
700 / 700
1300
20 / 0
480 / 200
480
120
2700 / 2700
2000 / 2000
Cost Without San Jose Plant (per day)
Cost with San Jose Plant (per day)
Savings Differential with San Jose Plant (per day)
500 / 200
720 / 0
: $140,100.00
: $135,700.00
: $4,400.00
0 / 1200
Investment Analysis

There can be many considerations to when the San Jose Bakery
should be opened depending on management and investor goals:




Minimize time to recuperate $4,000,000 investment
Maximize additional savings after investment recuperated
Latest deployment time and still recuperate investment
Effect on other bakery operations
Investment Analysis
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Additional Factors









Construction cost growth (Materials, Labor etc)
Pure money inflation cost
Current and future maintenance
Operation cost for current plants
Land cost due to growth in cities
Analysis considering other location than San Jose
Enhance the product line
Competition from other bakeries
Decrease in demand
Any Questions??
Any Questions??