Case - Fast Food Hunger

Case

It's picnic time. The only catch, it's your job. You are Shop Manager and you are responsible for the snack bar KB Fast Foods. It's the only snack bar in the vicinity and you are responsible for its profitability. It is 25 km away from the nearest city located next to a lovely natural spring with lush green picnic spot surrounded by tall trees. Yes, it is a favourite picnic getaway for couples and families, weather permitting. Your job involves 'ordering for the following day' depending on your robust judgment and past data provided. There are 7 items to be ordered and the demand would vary each day. Everyday you will have to order items for the next day to Supplier as nothing is available locally. Things to notice Demand depends upon the following factors Weekdays Weekends Weather Public Holidays (Festivals) Supplies Supplier is not a reliable person and you may or may not get the quantity you ordered Proportion of the order delivered is again simulated May be Zero in case of breakdowns Profitability depends on Sales of the food items Loss associated with lost sales Loss associated with items that get wasted due to perishability Misc. Charges Items not sold get added to the inventory (you need to consider Perishability factor) On some days, supplier may offer discounts on certain items if you order a certain minimum quantity. There are certain Life Lines that you can use to get the support for running your shop. Life Lines will incur cost which will be added to your Misc. Charges. Market Research Forecasting Insure Losses Given below is the variation in sale of 7 items for past 3 months. Product Fluctuation in demands for a day in last 3 months (No. of units) Cost Price Profit per unit Perishability (days) Opportunity loss (Under Stock) Min. Discount Qty. (% Discount) Burger 22-140 18 7 2 4 100 (20%) Pizza 24-135 23 12 1 5 95 (30%) Patties 18-130 8 4 2 2 90 (10%) Samosa 23-160 6 2 1 1 120 (10%) Sandwich 27-120 10 5 2 2 80 (20%) Pastry 24-116 7 3 2 2 76 (30%) Hotdog 28-130 11 4 1 2 90 (30%) Weather You can expect rain during the course of game and then the number of customers might vary from normal demand. Supplies The supplier for KB Fast Foods is not known for its efficiency in delivering the desired quantity of products all the time. From previous data, it is known that on an average, 60% of the times, supplier delivers the ordered amount to KB Fast Foods. But rest of the time his supply quantity varies (80-99%). Despite being unreliable, you have no choice but to depend on supplier because he is the only Kirana merchant willing to send his old three-wheeler on this treacherous journey every day. Breakdowns Being old, the vehicle sometimes breaks down enroute resulting in late delivery or the driver sometimes is unable to repair the vehicle and the delivery is not made. If there is a breakdown of the supply, there is no supply of goods on that particular day. Shop Manager will therefore need to place a fresh order for the next day. Perishability means something is subject to decay, spoilage, deterioration or destruction. In other words, something cannot be regained when it is not used in time or when it is unsold. It is a lost economic opportunity.