Question

P6-39 (book/static) Question Help O Paula Beane owns a restaurant franchise that is part of a chain of "southern homestyle restaurants. One of the chain's popular breakfast items is biscuits and gravy. Central Warehouse makes and freezes the biscuit dough, which it then sells to the franchise stores where it is thawed and baked in the individual stores by the cook. (Click the icon to view additional information) Requirement Who is responsible for the cost of the biscuits? At what level is the cost controllable? Do you agree that Paula should be angry with the purchasing agent? With Betty? Why or why not? The cost of the biscuits is usually the responsibility of V and usually controllable by However, in this scenario, has taken the responsibility for the cost of the biscuits from by making a purchasing decision. Since Paula holds V responsible for biscuit costs, should have discussed the decision with before trying to resolve the situation,

Answer 1

The cost of the cookies usually lies with the purchasing agent and is managed by the Central warehouse. In this case, the cook Betty has nevertheless claimed the responsibility for the prices of substitute biscuits from purchasing agent. Since Paula holds the buyer responsible for galley costs and assumes that Betty knows that, Betty should have discussed her decision with the purchasing agent before sending the kitchen assistant to the store. Paula should not be angry because her staff have acted in a short time in an emergency to satisfy their clients. The retailer is not able to predict and schedule the loss of biscuits if the central warehouse has no clear issues with its fridge. In fact, the issue lasted just three days which will not cause serious damage to a restaurant that sells a range of foodstuffs during the year (or even during the month). But, if they have three day cookies run out, it could have longterm consequences for customer satisfaction and profitability and could hurt income in the long term.