Discuss and define the goal and the scope of the problem, as well as a few feasible alternatives and at least one measure of the quality of the possible outcomes.
Sample Solution
Decision Problem: Expanding Our Bakery's Delivery Service
Goal: Increase our bakery's revenue by 20% within the next year.
Scope: We will focus on expanding our delivery service within a 5-mile radius of our bakery.
Alternatives:
-
Partner with a Third-Party Delivery Service: We can contract with a delivery service like DoorDash or Grubhub to handle deliveries for our bakery. This would be a quick and easy way to expand our reach, but we would lose some control over the customer experience and potentially pay high commission fees.
-
Hire In-House Delivery Drivers: We can recruit and train our own delivery drivers. This would give us more control over the delivery process and customer experience, but it would also require a larger upfront investment in hiring and managing staff.
-
Offer Limited Free Delivery: We can offer free delivery for orders above a certain amount. This could incentivize customers to spend more and encourage them to try our delivery service. However, it could also eat into our profits if not managed carefully.
-
Hybrid Approach: We can combine elements of the above options. Partner with a third-party service for peak hours and utilize in-house drivers for off-peak hours.
Measure of Quality: The primary measure of the quality of the outcome will be the increase in revenue generated by the expanded delivery service. We will also track additional metrics such as:
- Customer satisfaction with the delivery experience (through surveys or online reviews)
- Number of new customers acquired through delivery
- Cost per delivery (to assess profitability)
- Timeliness of deliveries
Full Answer Section
Additional Considerations:
- We will need to factor in the cost of packaging for delivery to ensure products arrive fresh and undamaged.
- We may need to adjust our bakery workflow to accommodate delivery orders efficiently.
- Marketing and promotion of the expanded delivery service will be crucial to its success.
By carefully considering these alternatives and the associated measures of quality, we can make an informed decision about how to expand our bakery's delivery service in a way that maximizes our chances of achieving our revenue goal.