Explain local company to custom-produce your product line, Operation Management

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You are the new owner of a local ice cream store located in a strip mall adjacent to a university campus. You've decided to sell 20 flavours of ice cream and are contemplating whether to make the ice cream in-house or outsource its production to a nearby ice cream manufacturer whose brand is in most local supermarkets. You are also contemplating how much authority to delegate to the two assistant store managers and to employees working the counter and the cash register.

a. What are the pros and cons of contracting with the local company to custom-produce your product line?

b. Since you do not plan to be in the store during all the hours it is open, what specific decision-making authority would you delegate to the two assistant store managers?

c. To what extent, if any, should store employees many of whom will be university students working part-time - be empowered to make decisions relating to store operations (opening and closing, keeping the premises clean and attractive, keeping the work area behind the counter stocked with adequate supplies of cups, cones, napkins, and so on)?

d. Should you create a policies and procedures manual for the assistant managers and employees or should you just give oral instructions and have them learn their duties and responsibilities on the job?

e. How can you maintain control during the times you are not in the store?


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