Tim Hortons Always Fresh Operations Research Paper

There would be a smaller margin for exhaustion of each variety. Donut varieties are interchangeable, so when certain varieties are exhausted, it is likely that customers would opt for an alternative variety of donut or even a pastry or cake item. Customers are unlikely to go into an aromatic donut shop for a donut and leave empty-handed.

Take Orders From Customers in Queues - Restaurants should send an employee through the line to take donut orders from those who already know what they want. This would allow the restaurant to adjust its production according to real-time demand input.

Tim Hortons is prone to dramatic peak periods such as the morning rush or lunch hour. Customers often wait in long queues during these periods. The value of the par-baked, Always Fresh production process is that it produces donuts in just a few minutes. Thus, it is possible for a particular restaurant to adjust production according to real-time demand.

Freshness

It is important to reduce the time between final baking and customer consumption as much as possible so as to keep the product fresh..

Smaller Batches - to reduce the time between baking and consumption, restaurants may produce donuts in smaller batches, so as to reduce the chance of certain varieties sitting in the display case too long.

Tim Hortons is known primarily for the freshness of its baked products.The freshness of the donuts is likely more important to customers than the selection on any given day, as donut varieties are interchangeable.

Transportation Costs

For certain items, the Tim Hortons distribution center in Ontario ships out par-baked goods on company vehicles to five different distribution centres across Canada and the U.S.

These distribution centers then ship the par-baked goods to system-wide restaurants through third-party transportation companies. This distribution method is vulnerable to high fuel prices and price revisions from transportation contractors.

Larger Shipments - the company should increase the size of par-baked goods deliveries to restaurants in order to reduce the number of shipments.

2009 Tim Horton Form 10-K p. 8

2009 Tim Horton Form 10-K p. 8

2009 Tim Horton Form 10-K p. 11

2009 Tim Horton Form 10-K p. 8

2009 Tim Horton Form 10-K p. 8

2009 Tim Horton Form 10-K p. 10

2009 Tim Horton Form 10-K p. 10….....