Happy Buns Restaurant
You are the VP of Franchise services for the Happy Buns Restaurant. You have been assigned the task of evaluation the best location for the next HB that a prospective franchisee has suggested in the Columbus, Ohio, area. You are using the standard template that provides for which criteria (attributes) you should evaluate. But the specific weights for these are open to adjustment depending on the specific area. These are the six criteria that you will use to evaluate this decision.
• Close to drive through traffic – traffic counts (avg. thousands/day)
• Property cost/investment and taxes = NPV of investment ($$)
• Size of building (square feet in thousands)
• Size of parking (max number of customers parking)
• Insurance costs (thousands $ per year)
• Ease of access from streets (subjective evaluation from observation)
There are five possible locations. You have collected the data from various sources including your VP Finance, Real estate agents, etc. This document summarizes the raw data for each of the five locations: Abberton, Bellview, Casstown, Denton, and Eddington, all suburbs of Columbus. See Data Below.
Assignment
Review the information and data regarding the different alternatives for restaurant location. Develop a MADM table with the raw data. Convert the raw data to utilities (scaled on 0 to 1). Determine the relative weights of each criteria. Evaluate the Decision Table for the best alternative. Do a sensitivity analysis.
Write a report to your boss, Executive VP. Explain your analysis and your recommendation. Provide a rationale for your decision including the logic you used to determine your weights.
Data
SLP Assignment Expectations
Analysis
• Accurate, complete analysis (in Excel and Word) using the MADM model and theory.
Written Report (Must use Heading for paragraphs).
• Provide a brief introduction/ background of the problem.
• Complete and accurate Excel analysis.
• Written analysis that supports Excel analysis, and provides thorough discussion of assumptions, rationale, and logic used.
• Complete, meaningful, and accurate recommendation(s).
Summary of Raw Data
for location of Happy Buns
in the Columbus, Ohio, area.
Criteria
Location Traffic count (avg. thousands/day) NPV of investment
($000,000) Bldg. size (sq ft. 000) Lot size
(Max customer parking) Insurance
($000 / yr) Access
(subjective)
Abberton 17 1.3 3.0 44 5.2 Good
Bellview 10 2.1 3.8 54 5.6 Excellent
Casstown 11 1.5 2.6 65 5.0 Fair
Denton 20 3.0 3.6 52 6.4 Poor
Eddington 15 2.8 4.2 50 6.3 Good
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