24/7 Business Plan

24/7 Cuisine Restaurant

Where Something Delicious is always Coocking
 Submitted By

1.Junayed Aziz (3-16-002-013)

2.Istiaque Ahmed (3-16-006-015)
3.Ariful Islam (02-16-002-006)
Which Business to Do: The Options
Option 1: A departmental Store named
Best Deals Store: Every Penny Counts
Option 2: A restaurant named
24/7 Cuisines: Where something delicious is always cooking

Pay Off Table:

State Of Nature
Options Remarks:
Favorable Market Unfavorable Market

Best Deal Counts 75,000.00 -40,000

24/7 Cuisine 100,000.00 -60,000

Do nothing 0.00 0.00

Probabilities 0.5 0.5

 Optimistic Table:
Pay Off Table:
State Of Nature

Options Maximax
Favorable Market Unfavorable Market

Best Deals Store 75,000 -40,000 75,000

24/7 Cuisine 100,000 -60,000 1,00,000 1,00,000

Do nothing 0.00 0.00

Choice would be : 24/7 Cuisine

 Pessimistic Table:
Pay Off Table:
State Of Nature

Options MaxiMin
Favorable Market Unfavorable Market

Best Deals Store 75,000 -40,000 -40,000

24/7 Cuisine 100,000 -60,000 -60,000

Do nothing 0.00 0.00 0.00 0.00

Choice would be : Do Nothing

 Weighted Average Table:
Pay Off Table:
State Of Nature

Options
Favorable Market Unfavorable Market

Best Deals Store 75,000 -40,000 (75000*.5) + (-40000*.5) = 17,500

24/7 Cuisine 100,000 -60,000 (100000*.5) + (-60000*.5) = 20,000 20,000

Do nothing 0.00 0.00 0.00

Probability 0.5 0.5

Choice would be : 24/7 Cuisine

 Regret Table :
Regret table / Opprtunity cost
Options
Favorable Market
Unfavorable Market

Best Deals Store 75000 100000-75000 = 25,000 -40000 0- (-40000) = 40,000 40,000 40,000

24/7 Cuisine 100000 100000-100000 = 0.00 -60000 0- (-60000) = 60,000 60,000

Do nothing 0.00 100000-0.00 = 100,000 0.00 0.00 0.00 = 0.00 100,000

Choice would be : Best Deals Store

Decision Tree : Based on Weighed Average

Favorable Market (0.5)

75,000

1 -40,000
Best deal Unfavorable Market (0.5)
Favorable Market (0.5)
100,000
A 24/7
2
-60,000
Do Nothing Unfavorable Market (0.5)
3 0
Do Nothing
 Analysis of EMV Criterion Table

According to the above decision tree, we can get the following information:
Node 1: (75000x0.5) + (-40000x0.5) = 17500
Node 2: (100000x0.5) + (-60000x0.5) = 20000
Node A: With these information based on EMV criterion, we choose 24/7 Cuisine on
Node A since the EMV is higher than Best Deals Store.

From the analysis of EMV from decision tree, we can choose to start a business of 24/7
Cuisine.
 LINEAR PROGRAMMING MODEL
24/7 Cuisine
At the 24/7 Cuisine start up, we are going to produce two products. It has got mainly , Chinese
cuisine, French Cuisine, Vegetarian Cuisines and fusion Cuisine. Out of those cuisines Chinese
And French Cuisines are extremely popular. So we select these two for future analysis.

Constraints:
1. Man hour required by the company to prepare the cuisines is limited because of the time
needed to prepare the each cuisines.
2.Space to accommodate more consumers since we dont have enough resource to meet the
demand. We shall try to use what in our hand.
Demand: Nearly 2000 cuisines per month.
3. We have 240 hours [ 14,400 minutes ] of Preparation & service and
100 hours [ 6000 minutes ] of Shopping & cleaning.
4. French cuisines take 24 minutes of preparation & service time, 12 minutes of cleaning &
shopping time. Yields a profit of taka 70 per cuisine.
5.Chinese cuisine takes 18 minutes of preparation & service time, 6 minutes of cleaning &
shopping time. Yields a profit of taka 50 per cuisine.
 LINEAR PROGRAMMING MODEL
French Cuisine Chinese Cuisine
Preparation & Serving 24 18
Cleaning & Shopping 12 06
Profit per Unit 70 50

Minutes Required to produce unit are shown in the table.

According to Linear Programming formula, we can create object function to maximize profit which
is also the product mix :
70F + 50F ; where F & C are the numbers of French & Chinese cuisines.

From the Constraints/Limitations we get the following function:

For Preparation & Serving : 24F + 18C < 14,400 (1)
For Cleaning & Shopping : 12F + 6C < 6000 (2)
LINEAR PROGRAMMING MODEL
According to Eq. (1) : According to Eq. (2) :
F=600; Where C=0 F=500; Where C=0
C=800; Where F=0 C=1000; Where F=0
 LINEAR PROGRAMMING MODEL

Now we put the coordinate values (C,F) into the object function:

Using Coordinates (0,0), we get the profit = 0

Using Coordinates (800,0), we get the profit = 40,000
Using Coordinates (0,500), we get the profit = 35,000
Using Coordinates (400,300), we get the profit = 41,000
 Duration Table
Activity Description Predecessor Duration (Day)
A Location Confirming - 2
B Gather Resource - 7
C Make a construction plan A 3
D Focus on Building B 2
E Start construction C 1
F Finish Ground Floor C 25
G Make interior decoration D,E 7
H Complete kitchen F,G 2
I Start for business H 3
 Network Diagram
5 1 6 9 7 16
0 2 2 2 3 5
E G
A C
22 17 23 23 14 30
0 0 2 2 0 5
5 25 30 30 2 32
0 7 7 F H
B 5 0 30 30 0 32
14 14 21
7 2 9 32 3 35
Numbers in red indicate slack time. D I
21 14 23 32 0 35
Duration of the project is 35 days.

Critical path is = ACFHI

THANK YOU