Fama 's French Bakery : The Food Service Industry With Baked Goods

1115 Words Dec 1st, 2015 5 Pages
Fama 's French Bakery provides the food service industry with baked goods, (i.e., they sell only to restaurants, not to retail outlets). The Bakery will be undergoing a massive expansion thanks to a new contract to provide a major fast-food chain with all of their baked good needs for a six state area. Fama 's Bakery got the contract because the previous provider was unable, for various reasons, to fulfill the obligations of the contract in a timely fashion. Less than thirty companies in the United States have operations and capabilities similar to Fama 's French Bakery. Fama 's French Bakery owns two production facilities and a number of warehouses for both production inputs (flour, sugar, butter, and yeast) and outputs (breads, buns and muffins). The Ohio production facility produces the buns, while the Indiana production facility produces the breads. Fama 's French started selling muffins in response to customers ' requests for the product. Rather than create the production lines necessary for the muffin product, Fama 's French subcontracts the work to Scholes Muffins, Inc. The goods are baked in natural-gas fired ovens, packaged for shipping, and held no more than twelve hours before being transported directly to the customer 's facilities. The transportation of the finished product (including the Scholes Muffins), as well as the inputs from warehouses to the production facilities, is performed by a fleet of vehicles owned and operated by a wholly-owned trucking…

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