The case illustrates how PK village auto dealing shop manages their car services using the proprietary app which allows them to make reservations by 10.00pm. After dropping them one offered transport to a destination within the specific area. The reservation is taken at 3.00pm, and the customers are promised that the vehicles are ready by 8 pm on Monday-Saturday. In a bid to offer the fastest and quality service delivery for the different types of the detailing services. The full-time work available is for the 8-hour, and the part-time detailers work for a minimum of 4-hour segment. The basis of evaluation is to develop a model that will represent the information relating to the PK auto dealing shop and estimate the revenue and cost the company will incur at every given day of the weeks based on the hourly cost of the full-time detailers $11.75 and part-time detailers costs $13.513.
The basis of evaluating the critical concern is to ensure that the revenue is maximized. The underlying aspect of projecting the estimated revenue by incorporating all the primary assumption to make the model efficient. The assumption to make the model efficient is that all the time or man-hour varies in proportion to the man-hour rate. Additionally, it is assumed that extra hours after the standard 8 hours is allocated to the part-time staff. Secondly, each customer has the mandate to ensure adequate to select the alternative services which he or she can afford. The fact that the staff work in an 8- hour shift implies that all the things are intended to work as intended and 100 percent without cases of illness, motor repair and other examples of mechanical breakdown. Additionally, other cases of emergency owing to sickness which mean that other circumstances might arise due to absenteeism.
The basis of having the underlying assumption is to give a complete assessment that will guarantee
The methodology used in deriving the net revenue is first to determine the number of hours in a week by dividing by adding the 1-hour break, and the rest include the part-time detailers to give the weekly values. The recommendation to the staff is to choose a viable option that will not only minimize cost but also guarantee efficiency to ensure we generate higher revenue for the firm. The model needs to capture the sensitivity of the information such that any changes in price will be incorporated due to inflation.
The justification to have the model is to set the model that will adopt the changes that give the decision maker to make informed decisions regarding the next sales revenue, total cost. As part of enhancing productivity ensure that all the staffs have extra staff to enable them to rest once in a week. Increasing the revenue will be the primary goal that will predict the future cash flow for the business. The sustainability remains to the key option that will ensure the company remains in operation over a more extended period.
In conclusion, the model is limited but not sufficient and can be modified by the management of the company to support other functions in the organization — the modification assists in future planning by assessment of productivity and the revenue determination.
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