Quantitative Analysis in Business Decision Final Project
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This document presents a case study for Apple Valley Natural Foods bakery. The bakery needs to determine the optimal allocation of shelf and refrigerator space across four product categories (breads, cakes, pies, donuts) to maximize profit. There are constraints on the minimum space allocated to each category and production requirements. The goal is to calculate the number of units of each product to produce to fully use the available space and production time while maximizing profits.
Quantitative Analysis in Business Decision Final Project
- 1. Final Consulting Project Apple Valley’s Bakery BSAD-643 Quantitative Methods for Business Decisions Yu-Wen Huang
- 2. Apple Valley Natural Foods A full-service natural foods store
- 3. Case Description Goal: Determine the best use of the shelf space and refrigerator space for bakery products.
- 4. Case Description Current Situation: ⬗ 25 square feet of shelf space ⬗ 10 square feet of refrigerator space ⬗ Total production time available is 2880 minutes per day ⬗ Four product categories: Breads, Cakes, Pies, and Donuts
- 5. Breads 1. White Toast 2. Whole Wheat Toast 3. French stick 4. Bagel 5. Banana bread 6. Croissant
- 6. Cakes 1. Banana Cake 2. Chocolate Cake 3. Black Forest Cake 4. Brownie 5. Cheese Cake
- 7. Pies 1. Boston cream pie 2. Blueberry pie 3. Apple pie 4. Buttermilk pie 5. Cheese pie
- 8. Donuts 1. Chocolate Donuts 2. Strawberry Donuts 3. Cinnamon Donuts 4. Oreo Donuts 5. Glazed Donuts 6. Coffee Donuts 7. Vanilla Donuts 8. Lemon Donuts 9. Doughnut Holes (4 in one bag) 10. Cinnamon Bun
- 10. Case Description Constraints: 1. At least 7 square feet of the space to the breads 2. At least 5 square feet of pies 3. At least 3 square feet of donuts 4. The amount of toast should be 1/3 of all kind of breads 5. Boston Cream pie should not be less than other kinds of pie 6. The amount of doughnut holes and cinnamon buns should be at least 1/4 of all kind of donuts 7. At least 80% of the space of refrigerator must be used 8. At least two units of each kind of products
- 11. Problem Definition How many units of breads, cakes, pies and donuts should the bakery produce in order to maximize its profit and to use the shelf’s space most efficiently?
- 12. Purpose & Sig To help companies efficiently use the space in their retail stores, determine the display of different products and at the same time reach the goal of profit maximization.
- 13. SYNTAX & Result
- 14. 1. Production Time Available: 2880 Production Time Used: 2790 Slack: 90 minutes 2. Shelf Space Available: 25 Shelf Space Used: 22.18 Slack: 2.82 square feet Slacks
- 15. Implication & Recommendations 1. Decreasing the shelf space of bakery product and allow other products to use the slack spaces. 2. Developing new products to use the slack shelf space since they still have 90 minutes of production time that are unused. 3. Decreasing the cost or increase the selling price of unprofitable products to reach higher profits.
- 16. Thank you