Apoorva: A Facility Location Dilemma
(4 pages of text)
In April 2016, the owner of Apoorva Mess (Apoorva) in Manipal, India, wanted to open a full-service economical restaurant to reach out to customers, beat the competition, improve his sales, and fulfil his dream of serving quality food at affordable rates to the lower middle class. He was facing a dilemma over selecting the best location for establishing his new restaurant, knowing that the wrong choice would spell disaster for his business in the long run. A number of conflicting constraints were making it difficult for him to come to a decision. He wanted to follow a systematic approach to pinpoint the final location.
This case can be used at the graduate and postgraduate level. It can be used to teach goal programming in an operations research or quantitative techniques course. It can also be used to teach facility location selection in a postgraduate service operations course. After completing the case, students should be able to do the following:
- Identify issues and challenges in selecting a facility location in the hospitality sector.
- Build a goal programming model from given data using Microsoft Excel Solver.
- Analyze and interpret the results obtained from Solver for the goal programming model.
- Analyze different scenarios using sensitivity analysis.
Accommodation & Food Services
India, Small, 2016
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