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    Suvida Case Study

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    Abhishek Jain
    The document presents a case study about a retail chain called Suvidha that sells homemade food products and is analyzing ways to optimize operations by reviewing employee costs, customer wait times at billing counters, and staffing levels. It provides data on customer traffic patterns, average billing amounts, current staffing levels, and objectives to determine the optimal number of billing counters and staff needed to minimize wait times and revenue loss. The case study poses a series of questions to analyze trade-offs between staffing costs and revenue to help the retail chain improve its operations.

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    Suvida Case Study

    Uploaded by

    Abhishek Jain
    357 views2 pages
    The document presents a case study about a retail chain called Suvidha that sells homemade food products and is analyzing ways to optimize operations by reviewing employee costs, customer wait times at billing counters, and staffing levels. It provides data on customer traffic patterns, average billing amounts, current staffing levels, and objectives to determine the optimal number of billing counters and staff needed to minimize wait times and revenue loss. The case study poses a series of questions to analyze trade-offs between staffing costs and revenue to help the retail chain improve its operations.

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    Retail Management case Study

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    The document presents a case study about a retail chain called Suvidha that sells homemade food products and is analyzing ways to optimize operations by reviewing employee costs, customer wait times at billing counters, and staffing levels. It provides data on customer traffic patterns, average billing amounts, current staffing levels, and objectives to determine the optimal number of billing counters and staff needed to minimize wait times and revenue loss. The case study poses a series of questions to analyze trade-offs between staffing costs and revenue to help the retail chain improve its operations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    357 views2 pages

    Suvida Case Study

    Uploaded by

    Abhishek Jain
    The document presents a case study about a retail chain called Suvidha that sells homemade food products and is analyzing ways to optimize operations by reviewing employee costs, customer wait times at billing counters, and staffing levels. It provides data on customer traffic patterns, average billing amounts, current staffing levels, and objectives to determine the optimal number of billing counters and staff needed to minimize wait times and revenue loss. The case study poses a series of questions to analyze trade-offs between staffing costs and revenue to help the retail chain improve its operations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    RETAIL MANAGEMENT CASE STUDY

    Upendra Lele (March 2012)

    Suvidha is an upcoming chain of retail outlets for spreading their network in major metro cities. It
    has established a good name in quality home-made food products named Moms recipes. These
    products range from ready-to-cook vegetables, chapattis, pickles, salads etc. which have gained
    immense popularity among the working class. The company also assigns great importance to
    customer service.

    Prakash is a business school graduate who has recently joined one of the outlets of Suvidha, as an
    intern. The Manager of the outlet has given him the task of optimizing the operations, with specific
    focus on employee costs and waiting time at the billing counters. Over 4 weeks, Prakash made some
    observations regarding customer footfalls at the Mall, average billing per customer and the average
    billing time. He also did a survey to understand the customers expectations about the waiting time
    at the billing counters.

    The pattern of number of customers visiting the mall is given below:

    From To Mon Tue Wed Thu Fri Sat Sun


    9 AM 10 AM 11 9 12 14 10 32 22
    10 AM 11 AM 23 27 18 20 25 41 47
    11 AM 12 PM 27 32 22 25 34 58 67
    12 PM 1 PM 45 54 38 63 55 134 124
    1 PM 2 PM 62 63 56 87 76 178 212
    2 PM 3 PM 28 25 19 37 33 112 155
    3 PM 4 PM 23 20 25 30 40 123 167
    4 PM 5 PM 53 67 47 72 85 157 225
    5 PM 6 PM 123 104 87 75 115 234 302
    6 PM 7 PM 135 127 112 178 187 267 335
    7 PM 8 PM 114 109 125 132 167 255 305
    8 PM 9 PM 24 22 21 27 25 48 54
    9 PM 10 PM 7 9 6 10 8 32 27

    The weekly purchasing pattern of the customers is as follows:

    Mon Tue Wed Thu Fri Sat Sun


    Average billing per 167 225 204 360 432 604 567
    customer (INR)
    Note: 1 USD = 45 INR (Indian rupees) approximately

    Following workforce is currently being deployed at the retail outlet:

    Mon Tue Wed Thu Fri Sat Sun


    Sales persons
    - First shift 4 4 4 4 4 8 8
    - Second shift 8 8 8 8 8 12 12
    Billing staff
    - First shift 2 2 2 2 2 4 4
    -Second shift 4 4 4 4 4 6 6

    A customer spends an average of 45 minutes in the mall during his visit. The company believes that
    at least one sales person is required per 15 customers to provide assistance during their visit to the
    mall. The sales persons work in two shifts: 9 AM to 5 PM and 2 PM to 10 PM. They are contract
    employees which are provided by an agency at a charge of 300 INR per shift per person. The daily
    requirement of sales persons for the entire week needs to be provided to the agency at the
    beginning of every week.

    The average billing time per customer is 2.60 minutes with a standard deviation of 0.16 minutes.
    Customers are rather sensitive towards waiting time, and if it starts exceeding 6 minutes, they might
    decide not to visit the Mall again.

    The cost of a billing machine is 16700 INR and its operational cost is 55 INR per hour which includes
    employee cost.

    Questions:

    1. Is the current staffing plan optimal? Estimate the daily requirement of sales persons
    (excluding staff at billing counters).
    2. Determine the number of billing counters required at different times during each day in
    order to ensure that 95% of the customers will not have to wait for more than 5 minutes at
    the billing counter. Assume that inter-arrival time between customers is normally distributed
    around the mean for each time interval.
    3. What average queue length is achieved in the above case? What is the average waiting time
    for each customer?
    4. Estimate the revenue loss per week because of not meeting customers expectations of
    billing period.
    5. Analyze the trade-off between purchasing and manning the billing machines versus losing
    the revenue.
    6. Determine the optimal number of billing machines to be purchased.
    7. If the sales persons could also be used for the billing counters if they are under-utilized, then
    estimate the daily requirement of staff.

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