Inventory Modelling for Restaurant’s Demand and Supply - A Case Study with Reference to a Hyderabad Restaurant’s

Abstract

Sarode Shirisha*, Abhirami KR, Akshay Krishnan and Tirupathi Rao Padi

The vital requirements of any Restaurant in order to fulfill their customers' requirements. In this Case study, the focus on Customer purchase analysis of 259 items of a Restaurant located in Hyderabad. We calculate the top 10 items based on sales. Each parameter has specific significance in inventory management, and the table’s data helps interpret and optimize inventory decisions. The total cost of managing inventory, including ordering and holding costs High and low items of demand. In this Case study, we calculate as the High EOQ value (it indicates economies of scale ordering) item and Low EOQ value (suggest less frequent orders due to lower demand). In a Graphical representation - Sales Trend Over Time, Reorder Point Vs. Item, EOQ by Item and Scatter Plot for Annual Demand Vs. EOQ. A total of 170 items were sold across both channels, generating 55,335 rupees in revenue. The majority of the sales came from Dine-In, with 114 items sold, contributing 37,107 rupees (67% of total revenue). The remaining 56 items were sold through Pick-Up, generating 18,228 rupees (33% of total revenue). Calculated average daily demand analysis, inclusion of waste factor, order point, economic order quantity (EOQ), cost analysis, and item prioritization. For calculation, MS Excel and R code are used.

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