miss
LP Case Study – Tatu’sFood Kiosk
Problem Statement
Tatu is a senior at Tech, and she’s investigating different ways to finance her final year at school. She is considering leasing a Food Kiosk outside the Tech stadium at home football games. Tech sells out every home game, and Tatu knows, from attending the games herself, that everyone eats a lot of food. She has to pay $1,000 per game for a Kiosk, and the Kiosks are not very large. Vendors can sell either food or drinks on Tech property, but not both. Only the Tech athletic department concession stands can sell both inside the stadium. She thinks slices of cheese pizza, hot dogs, and barbecue sandwiches are the most popular food items among fans and so these are the items she would sell.
Most food items are sold during the hour before the game starts and during half time; thus it will not be possible for Tatu to prepare the food while she is selling it. She must prepare the food ahead of time and then store it ina warming oven. For $600 she can lease a warming oven for the six-game home season. The oven has 16 shelves, and each shelf is 3 feet by 4 feet. She plans to fill the oven with the three food items before the game and then again before half time.
Tatu has negotiated with a local pizza delivery company to deliver 14-inch cheese pizzas twice each game – 2 hours before the game and right after the opening kickoff. Each pizza will cost her $4.50 and will include 6 slices. She estimates it will cost her $0.50 for each hot dog and $1.00 for each barbecue sandwich if she makes the barbecue herself the night before. She measured a hot dog and found it takes up about 16 in2 of space, whereas a barbecue sandwich takes up about 25 in2. She plans to sell a piece of pizza for $1.50 and a hot dog for $1.60 each and a barbecue sandwich for $2.25. She has $1,500 in cash available to purchase and prepare the food items for the first home game; for the remaining five games she will purchase her
Problem Statement
Tatu is a senior at Tech, and she’s investigating different ways to finance her final year at school. She is considering leasing a Food Kiosk outside the Tech stadium at home football games. Tech sells out every home game, and Tatu knows, from attending the games herself, that everyone eats a lot of food. She has to pay $1,000 per game for a Kiosk, and the Kiosks are not very large. Vendors can sell either food or drinks on Tech property, but not both. Only the Tech athletic department concession stands can sell both inside the stadium. She thinks slices of cheese pizza, hot dogs, and barbecue sandwiches are the most popular food items among fans and so these are the items she would sell.
Most food items are sold during the hour before the game starts and during half time; thus it will not be possible for Tatu to prepare the food while she is selling it. She must prepare the food ahead of time and then store it ina warming oven. For $600 she can lease a warming oven for the six-game home season. The oven has 16 shelves, and each shelf is 3 feet by 4 feet. She plans to fill the oven with the three food items before the game and then again before half time.
Tatu has negotiated with a local pizza delivery company to deliver 14-inch cheese pizzas twice each game – 2 hours before the game and right after the opening kickoff. Each pizza will cost her $4.50 and will include 6 slices. She estimates it will cost her $0.50 for each hot dog and $1.00 for each barbecue sandwich if she makes the barbecue herself the night before. She measured a hot dog and found it takes up about 16 in2 of space, whereas a barbecue sandwich takes up about 25 in2. She plans to sell a piece of pizza for $1.50 and a hot dog for $1.60 each and a barbecue sandwich for $2.25. She has $1,500 in cash available to purchase and prepare the food items for the first home game; for the remaining five games she will purchase her