Problem Statement for Apollo Airlines:

The problem faced by Apollo hospitals is of food and beverage wastage which was about 4%
of the overall hospital cost. The hospital was trying to find how they can develop a model
that will forecast the required quantity of food and beverages which will lead to
minimizing wastage. They were also concerned about the scalability of the model. In
future ,the hospital might undergo expansion and therefore the number of beds will
increase in the hospital. It is imperative that the model developed should be scalable to adapt to
this expansion.The hospital had various units located in different areas. It has to be decided
whether an individual model would work across all the units considering the distinct
demography and processes of these units. In the pursuit of avoiding wastage of food, the
situation of a food item not being available to the patient who needs it should not arise. Hence
the safety stock of 10% excess food was resulting as pre-consumption wastage. However,
procurement from retail or wholesale on a monthly basis that were delivered to the hospital one
day in advance lead to their storage in an adequate area. As extra food items were prepared
that were wasted, these extra raw material procurement was also wasted away as unnecessary
inventory.