Abstract
Golden Grains was a Chennai-based industrial bakery producing large volumes of bread, cakes, and confectionary items for sale to contract manufacturers and retail outlets. An emphasis on being a localized city brand and contract manufacturer made its business model unique among the brand- and market-focused competition. A city-market bakery’s challenge was to ensure freshness, availability, and financial viability in a low-margin and operationally intensive industry. The operations management challenges included production planning, deciding the optimal product mix, and establishing an operational plan to ensure profitability and effective cost management of resources. Investor anxiety due to poor financial performance required top management to turn the business around, but identifying a product mix and implementation plan that satisfied operational needs while dramatically improving operating margins would not be easy.
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