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Transcript of QADM Project
Medium Size Tea Shop, serving its customers the best blend of Tea (Masala & Others) in an environment to soothe the nerves while enjoying the company of friends & family. Tea is the 2nd most preferred and widely consumed beverage in the world. It’s healthy, an “affordable luxury” and offers a range and depth of tastes.
In Pakistan, tea is popular all over the country and holds an integral significance in local culture.
The traditional Masala Chai is a spiced beverage brewed with different proportions of warming spices. Following techniques have been applied during the course of this project.
1. Decision Analysis - Project feasibility
2. Break-even Analysis - Profitability & ROI
3. Linear Programming - Staff Scheduling
4. Linear Programming - Optimized Advertising Expense.
5. Regression Analysis - Tea/Coffee Sales Forecast
6. Simulation-Queuing - Customer Serve Timings Market survey of similar tea/coffee house.
Estimation of Initial setup cost and operational expense was done based on following,
Real Estate Valuation
Supply chain working
Consumer Market Survey
Net profit/loss calculation in different states of nature.
Breakeven point calculation resulted in Let's Start It Masala Tea House To reinvigorate the sensual experience of traditional tea. There is a great deal of poetry and fine sentiment in a chest of tea - Ralph Waldo Emerson, Make something that people Like Objective Masala Tea House aims to provide a unique and stimulating experience to our customer base through an exclusive mix of traditional tea expertly blended with Herbs & Spices. It plans to mark its image as one of the finest brands for all sections of society. Goals To establish a healthy market share within 12-15 months of launch.
To open a chain of Masala Tea House in main cities of Pakistan.
Negotiate a wholesale tea supply arrangement with a reputable tea supplier Decision Tree Analysis Five steps taken during Decision Tree Analysis were
Whether to Open Large/Medium/Small Scale Tea-House.
Drawing the Decision Tree.
Probability Assignment -
EMV Calculations Conclusion - Medium Facility Regression Analysis Forecast of Tea/Coffee sales is based on its dependency on certain independent variables like Weather & Age. Sales = 554.23 + (-12.93) x Avg. Temp. + (-0.794) x Avg. Age P-value being less than 0.5 which signifies that Linear Relationship exists among the set of variables. Linear Programming Based on the earlier techniques applied, 2 key challenges faced were
Media Selection for Advertisement
Solution - 75,000 x AW + 92,000 x BB + 85,000 x FB Staff Optimization for varying customer forecast. Constraints:
1. 5 full time workers
2. Full time workers are given a day off during week days, so 4 are available during weekdays
3. Part time workers work for minimum 4 hours/day
4. At least 02 full time workers at any time Simulation modeling Linear Programming Simulation modeling is used to simulate expected number of customer arrival and their Order/serving time Assumptions:
Tea/Coffee 4 min. per person
Juice/Shake/Smoothie 5 min. per person
Hot/Cold Beverage with Snacks 7 min. per person
Probability for arrival: Probability for order: