Managerial decision tools

UN , *' fa; _._..=.....-..--..V_,,.__, ., _ ,_ , \".5... , , Pr" 9 C i duq.blackboardmmlwebappslbiackboatdlcontentllistContentjspicoursejd=_l3'l903_'lotcontent_id=_3697406_'l I'IOLI ncements structor Contact Info ourse Content - ssngnments Discussion Board Email My Grades Zoom Meetings Acadermr. integrity Student Resources Blackboard Help Purchase Textbooks Lcy's Restaurant Case Assignment This assignment is based on Case 7 ("Lolly's Restaurant") from the case book for the course. This assignment can be completed in groups of up to four students. Only one submission per group is required. The case requires you to make a lot of assumptions to conduct the analysis. While you will still need to make some assumptions and justify them In your case memo, lwouid like everyone to work from the following set of assumptions so that we're all on the same page: - The proposed dinner service would run from 2-1 0pm, but the busy period is three hours in the middle of the shift. Assume that all of the dinner customers come In during these busy three hours. if you have enough capacity [0 meet the demand in these busy hours, you'll denitely have enough capacity to meet demand that materiallzes In any other hour during the shift ' The breakfast and lunch shifts are each busy for three hours. During these six hours, we earn an average use this info (along with another piece of Info in the case) to determine the average number of customers per hour d lunch. of $6000 in revenue. You can tiring breakfast and I would like you to conduct the following analysis based on the information provided In the case. Please note that this assignment does not require the development of a linear program and its corresponding sensitivity report. You are asked to develop a prot model that estimates the prot of the dinner shift based on various assumptions described In the case Itself. The sensitivity analysis you are asked to perform would be using the tools other than the LP Sensitivity Report ii.e.. Scenario Manager, Data Tables, and/or TopRankl to examine the impact of various parameter aSsumptions. 1. How many cooks and waiters will be needed to staff the new dinner senrice? (Hint: You need to extrapolate many of the values given in the case for the breakfast/lunch service to what they would be over the dinner service.) [20 points] 2. What is the estimated revenue, expenses, and prot from each dinner shift? [30 points] 3. The case requires you to make many assumptions with respect to the various revenue, cost, and service parameters used in the analysis above. Conduct a sensitivity analysis with respect to the parameters that you think make the most Signicant Impact on the profit per dinner shift. [30 points] 4. Summarize your analysis in a tWopage (maximum) report that also makes a recommendation to Earl about whether or not the dinner expansion is worth the risks [20 points]