IS 102 Computer as an Analysis Tool Project Proposal

John Kao Jay Ng Jerrold Wee Chan Keng Theng Pandora Soh G14

8 March 2013

Prepared for: Professor Pradeep Varakantham

1. Company Profile Since its establishment in 1992, Neo Garden Catering has devoted itself tirelessly in the area of home delivery meals and event food catering. Today, they can proudly call itself the choice of household as it has been awarded the no. 1 caterer in Singapore. 2. Problem Scope There are four problems currently faced by them. This projects objective is to solve them by analysing the figures. 2.1. Price optimisation of buffet menu There are a fixed number of dishes in the current Mini Buffet menu. They want to find out what happens to the profitability when dishes are added or removed, and ultimately to figure out the optimised combination of dishes. 2.2. Viability of wedding venture Neo Garden Catering wishes to explore the option to branch out into the wedding function food catering scene. However, they are apprehensive to invest large amount of money without first having research done. 2.3. Price optimization of package The price of each package has been stagnant for some time, they want to know if an increase or decrease in price would affect the demand and in turn the profitability. 2.4. Discount range Regular customers currently have no benefits. The issue is that they do not know the range of discount it is able to give without making losses and still meet its desired profit margin. 3. Model Overview 3.1. Price optimization of buffet menu
Quantity demanded Total revenue Profit margin

Selling price of package Package Choice of food chosen

Total cost Cost price of food

3.2. Viability of wedding venture

Page 1 of 3

Variable cost

Forecasted profit

Decision

Wedding customers preferences

Forecasted demand

Fixed cost

3.3. Price optimisation of package

Varying demand scenario

Package Demand

Package new price

Forecasted profit margin

Price Elasticity Package A Package B Package C

3.4. Discount range

Profit margin Newly customised menu Desired profit margin Discount Range

4. Data Sources Neo Garden Catering provided us with the price list of the Mini Buffet packages and their component dishes, cost and ala carte selling prices of the dishes, past 3 months sales quantity of packages and the choice of dishes chosen for us to optimise the package, and wedding customers dish preferences for us to form a new wedding function catering menu. 5. Analysis We plan to analyse the data given and provide solutions that allows the business to monitor and manage its profitability, and incorporate flexibility in dealing with customers different client needs through loyalty discounts and allowing for dish preferences in fixed packages like the wedding menu. and try to optimize them. We will then optimize the existing package to offer the highest profit and also form an optimized fixed menulist which will be used to create our new wedding menu.

Page 2 of 3

Application

Menu optimization: Optimal vs Current

Wedding menu: Decision?

Discount range How much discount?

Optimized Package Prices

Applied to Weddings Clients

Optimized Fixed Menulist

Page 3 of 3