Biscotti Bakery - Operations

OPERATIONS

The current production facility is a licensed commercial kitchen space rented in Portland, Oregon. The monthly rental for the kitchen is $1,200 per month. Presently, the kitchen is being shared at a cost of only $300 per month. It is estimated that production will increase in October of 1995 and monthly rent payments of $600 will be required. By January of 1996, an entire kitchen will be needed for projected production.

Initially UPS will be used for shipping as they have an office within two blocks of the kitchen. Other means of distribution are being researched. A low-mileage Nissan truck is being purchased for $2,000 to be used to pick up supplies, make sales calls, and deliveries.

The Amarna Valley has a good supply of minimum wage workers. Financing advantages are available through the Business Industrial Development Corporation if low-income minority workers are hired. There is also the availability of handicapped workers as well as...

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