The Babson MBA Case Certification Program
M&M Case
Type of case: Estimation
Interviewer: To be read to interviewee: As a manufacturer, how many M&Ms of each
color go into a 3-ounce bag?
Stop student if they do not take time to think and draw some beginning structure before
they start talking. Dont start giving information until students ask. Once they do, be sure
to volunteer proportion information.
Additional Info:
20 M&Ms make up a 3 ounce bag
There are six colors of M&Ms: yellow, red, green, blue, brown, orange
They all cost the same to produce
Research indicates that customers have no preferences of color.
Color is added on at the end of the mfr process
They are mixed in the same ratio that they are produced
Capacity of adding color:
3 tanks hold the 3 primary colors: yellow, red, blue
1 remaining tank used to mix colors to prepare: green, brown, orange
Each of the 4 tanks has equal capacity.
The 1 mixing tank pulls yellow, red, and blue as needed from the same supply that fills
the 3 primary tanks.
They only refill the primary tanks when all three have emptied.
Tanks are allowed to run out before they refill for batch control purposes
Proportion to mix brown: 2/3 yellow, 1/6 red, 1/6 blue
Proportion to mix green: yellow, blue
Proportion to mix orange: yellow, red
SOLUTION STRUCTURE
This case is designed to get you into a manufacturing state of mind. The idea is that you
will burn through yellow faster than any other color since it is needed the most. Therefore,
there should technically be more red and blue M&Ms in every bag. They will still be
produced after the supply of yellow has run out, stopping production of yellow, green,
orange, and brown.