Cupcake Creations Inc. is a B2B bakery that supplies cupcakes and other related products to supermarkets,

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Project Overview

Cupcake Creations Inc. is a B2B bakery that supplies cupcakes and other related products to supermarkets, restaurants, and other stores in the Hartford area. The firm’s mission is to offer baked-fresh daily cupcakes, cakes, chocolates, and cookies using only premium ingredients. Because of this mission, they require a tight inventory management decision support system to ensure that ingredients remain fresh and there are enough of them to satisfy customer orders. Since the firm’s most attractive and profitable product line are the cupcakes, they want to concentrate on controlling the ordering policy of ingredients for cupcakes.

 

The company makes seven types of cupcakes: dark chocolate, lemon, raspberry chocolate chip, red velvet, sprinkle, sweetheart red velvet, and vanilla. Red velvet and sweetheart red velvet cupcakes are essentially the same, except that they vary a little in their shape, their frosting, and some toppings. Even though the offering of products could vary by season and in some cases, there could be special offerings, the cupcakes are sold in ornamental branded boxes containing a dozen cupcakes each. These are the current types of cupcake boxes they sell:

1. Lemon Assorted Dozen,

2. Lemon Dozen,

3. Raspberry Chocolate Chip Assorted Dozen,

4. Sweetheart Red Velvet Dozen,

5. Gift Box,

6. Sprinkles Dozen,

7. Red Velvet Dozen.

The firm has put together an R script file entitled “CupcakeProjectData.R” containing data about their cupcake operation (available on Husky CT). Concretely, this file contains scripts to create two data matrices and one data frame.

 

The matrix entitled “CupcakePerBox” is a 7 x 7 matrix describing the number of cupcakes of each kind contained in each type of box (see Figure 1). The columns represent the types of cupcake and rows

 

represent the type of box. For example, a “Gift Box” always contains 3 dark chocolate cupcakes, 3 red velvet cupcakes, 3 sprinkle cupcakes, and 3 vanilla cupcakes. The company takes online and phone customer orders for cupcake boxes every day. The cupcakes are made the night before or early in the morning of the scheduled delivery day (hence, the delivery day cannot be the same day that the order is placed).

 

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