LAHORE SCHOOL OF ECONOMICS

AOM ASSIGNMENT

MBA 2

SECTION: A

NAME:
Saad Ali Khan

DATE:
11th March 2015

TOPIC:
Burger King Corporation

The peak hourly demand should be = (34227/4.3 weeks) X 18% X 17.9%

= 256 Sandwiches approximately

The demand for each type of burger at peak hour is as following:

Whopper:

14.5% of 256 = 37.12 or 37 burger approximately

Whopper with cheese:

7.7% of 256 = 19.7 or 20 burgers approximately

Whopper Junior:

9.0% of 256 = 23.04 or 24 burgers approximately

Double cheese burger:

9.4% of 256 = 24.06 or 24 burgers approximately

Cheese Burger:

20% of 256 = 51.2 or 51 burgers approximately

Hamburger:

18.6% of 256 = 47.6 or 48 burgers approximately

Others:

4% of 256 = 10.24 or 10 burgers approximately

Roast Beef:

3.4% of 256 = 8.70 or 9 burgers approximately

Chicken:

6.2% of 256 = 15.87 or 16 burgers approximately

Ham and cheese:

2.5% of 256 = 6.4 or 6 burgers approximately

Fish:

4.75 of 256 = 12 approximately

Of which the burger patties comprise of: cheeseburger patties+ hamburger patties+ whopper patties+ others
= 20%+ 18.6%+ 4%+ 14.5%
=57.1% of the total sandwiches

Hence the total peak hourly demand to produce burger patties is 57.1% of 256 sandwiches, which is equal to
147 burger patties per hour.

The capacity of making these burgers is 200 Burgers and 100 Whoppers as per the case.

What is inventory replenishment cycle and quantity should be ordered?

Replenishment Cost

We have to find out the holding and ordering cost

Formula is: D/Q*S + Q/2*H