Clean Wash Laundromat
I. BACKGROUND OF THE CASE
Ms. Giesel Reyes, the proprietor of Clean Wash Laundromat, reread the recently received fax from Hair cuts, a well-established chain of beauty parlors. Hair cuts is proposing a business deal with Ms. Reyes wherein Hair Cuts will avail of the wash, dry and fold service of Clean Wash Laundromat at 15% off the regular price. The service will cover a period of four months from June to September, which are peak months for Clean Wash Laundromat and will entail 60 kg per week or 240 kg per month of laundry.
Clean w\Wash Laundromat was established two years ago with an initial investment of P800, 000.00. Located near to prominent universities and several residential condominiums, Clean Wash caters mostly to students who live in dormitories and to residents of condominiums. It offers three basic services: wash, dry and fold; pressing and dry-cleaning. Except for dry-cleaning services, all services are done in-house. Dry cleaning is subcontracted to Dry Cleaning experts and is offered at a 15% mark-up.
Clean Wash Laundromat operates seven days a week from 7 a.m. to 9 p.m. It has 5 washing machines, 5 dryers and 3 flat irons. A washing machine and a dryer can handle a maximum of 15 loads of 3 kg laundry per day (1 load=3kg). Clean Wash offers next day pick-up service. Upon request of the customer, Clean Wash can arrange a same day pick-up or the customer can wait in the shop at no extra cost.
II. STATEMENT OF THE PROBLEM
Should Ms. Reyes accept the proposal of Hair Cuts?
III. ARES OF CONSIDERATION
a. Quantitative Factors PRICE
Wash, Dry, Fold P35/kg
AVERAGE NUMBER OF LOADS PER MONTH (1 load=3kg)
January 1,960.00
February 1,820.00
March 1,680.00
April 1,680.00
May 1,540.00
June 2,080.00
July 2,160.00
August 2,170.00
September 2,150.00
October
Ms. Giesel Reyes, the proprietor of Clean Wash Laundromat, reread the recently received fax from Hair cuts, a well-established chain of beauty parlors. Hair cuts is proposing a business deal with Ms. Reyes wherein Hair Cuts will avail of the wash, dry and fold service of Clean Wash Laundromat at 15% off the regular price. The service will cover a period of four months from June to September, which are peak months for Clean Wash Laundromat and will entail 60 kg per week or 240 kg per month of laundry.
Clean w\Wash Laundromat was established two years ago with an initial investment of P800, 000.00. Located near to prominent universities and several residential condominiums, Clean Wash caters mostly to students who live in dormitories and to residents of condominiums. It offers three basic services: wash, dry and fold; pressing and dry-cleaning. Except for dry-cleaning services, all services are done in-house. Dry cleaning is subcontracted to Dry Cleaning experts and is offered at a 15% mark-up.
Clean Wash Laundromat operates seven days a week from 7 a.m. to 9 p.m. It has 5 washing machines, 5 dryers and 3 flat irons. A washing machine and a dryer can handle a maximum of 15 loads of 3 kg laundry per day (1 load=3kg). Clean Wash offers next day pick-up service. Upon request of the customer, Clean Wash can arrange a same day pick-up or the customer can wait in the shop at no extra cost.
II. STATEMENT OF THE PROBLEM
Should Ms. Reyes accept the proposal of Hair Cuts?
III. ARES OF CONSIDERATION
a. Quantitative Factors PRICE
Wash, Dry, Fold P35/kg
AVERAGE NUMBER OF LOADS PER MONTH (1 load=3kg)
January 1,960.00
February 1,820.00
March 1,680.00
April 1,680.00
May 1,540.00
June 2,080.00
July 2,160.00
August 2,170.00
September 2,150.00
October