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This is a take-home examination. You should build a spreadsheet model for the problem, save the Excel file in 2003 format under the name nnnnnn.xls, where nnnnnn is your student id, and e-mail the spreadsheet to epbm_it@yahoo.in. Deadline for submitting the file is 9:30 pm, June 4. This test is to be answered alone and copying in any form will invite severe penalty. Files not following the naming convention or e-mailed beyond deadline will not be evaluated.
Sulabh Supermarket
Sulabh supermarket is determined to please its customers with a customer loyalty card. At present 30% of all shoppers are loyal to Sulabh. A loyal Sulabh customer shops at Sulabh outlet 80% of the time. A non-loyal (Sulabh) customer on the other hand shops 10% of the time. A typical customer spends Rs. 150 per week and Sulabh is operating on a 4% profit margin. The customer loyalty card will cost Sulabh an average of 10 paisa per rupee spent. We believe Sulabhs share of loyal customers will increase by an unknown amount between 2% and 10%. We also believe that the fraction of the time a loyal customer shops at Sulabh will increase by an amount between 5% and 15%. Should Sulabh adopt a customer loyalty card? Should Sulabh adopt the card if its profit margin in 8% instead of 4%?
be ordered in what is called its feast-version (the non-feast version is called the normal version). The prices for the various type-size combinations and the extra costs for extra cheese and feast-version are given in the following table. For example, one unit of the NV-II Pizza in medium size, feast-version with extra cheese, costs Rs 240+45+30 = Rs.315. Similarly, one unit of large size, Veg-I with extra cheese, normal (non-feast) version costs Rs. 260 + 65 + 0 = Rs. 325. Type Regul ar 75 130 95 140 35 Size Mediu m 150 230 200 240 45
Each of the 3 sizes is available in its feast version for Rs. 30 extra. A number of other options such as toppings are usually offered, but can be ignored for the task at hand. To further simplify the analysis, the proprietor assumes that the low budget customers want the proprietor to suggest them only alternatives each of which consists of one unit of a Pizza and that the budget of a customer never exceeds the price of the costliest combination. In case the budget permits several alternatives, the proprietor wants to rank the alternatives in descending order of price, and indicate to the customer only the top 3 alternatives. For example, when a customer's budget is Rs 110, then the following four combinations are feasible: Alternative Combination Veg I Regular, feast, without extra cheese Veg I, Regular, non-feast, extra cheese Veg l, Regular, non-feast, without extra cheese NV I, Regular, non-feast, without extra cheese However the proprietor suggests only combinations 2, 1 and 4 in that order. Design a spreadsheet without a macro in where the user will be able to input a customers budget and get as output the list of best three alternative combinations (type of pizza, size, feast or non-feast and with/without extra cheese) that can offered.
1. 2. 3. 4.