Business Idea

Aloesooth Ltd.
About us:
Aloesooth Limited is a pioneer among the private sector hand sanitizer producers in the
country. We will help the county by producing hand sanitizer and serving with minimum cost
which will provide the following facilities to the country people.

 Prevent the transmission of infection.

 Effective over regular soaps.
 Widely useable in areas with shortage of water.

Land & Investment:

We selected our plant location at Savar , Birulia . We will start the business at home in area of
200 square fit. Our investment will be less than 1 lakh tk.

Imported Equipment & material:

Mixer machine price = 5000 taka

Bottle filling machine= 6000 taka
Isopropyl Alcohol = 1000 taka
Fragrance =1000 taka
Carbopol powder =2300 taka
Triethanolamine =900 taka
Local Equipment:

DS Water =
Glycerin = 250 taka
Color = 600 taka
Bottle = 200 taka

Others:
Rent = 50000 taka
Labor = 20000 taka
Utilities= 5000 taka
R&D = 5000 taka
total = 80000 taka
 Operating Part of Idea Including

Decision making under uncertainty

Target customer Decline Stable Increase

Hospitals 0.5 1.7 4.5
Hotels 1.5 1.9 2.4
Medical stores 1.7 1.4 1.0
Airports 0.7 2.4 3.6
Supermarkets 3.2 1.5 0.6
Schools 1.2 2.1 1.4
Online markets 1.4 0.7 2.5

Table 1

Target customers Maximax minimax Equal probability value

Hospitals 4.5 0.5 1/3(0.5+1.7+4.5)=2.233
Hotels 2.4 1.5 1/3(1.5+1.9+2.4)=1.933
Medical stores 1.7 1.0 1/3(1.7+1.4+1.0)=1.366
airports 3.6 0.7 1/3(0.7+2.4+3.6)=2.233
Supermarkets 3.2 0.6 1/3(3.2+1.5+0.6)=1.766
Schools 2.1 1.2 1/3(1.2+2.1+1.4)=1.566
Online markets 2.5 0.7 1/3(1.4+0.7+2.5)=1.533

Table 2
Target customers Decline stable increase maximum
Hospitals 2.7 0.7 0 2.7

hotels 1.7 0.5 2.1 2.1

Medical stores 1.5 1 3.5 3.5

Airports 2.5 0 0.9 2.5

supermarkets 0 0.9 3.9 3.9

Schools 1.1 0.3 3.1 3.1

Online markets 0.7 1.7 2 2
 Table 3

Target customers Minimum Maximum Payoff =maximum+1-minimum

Hospitals 0.5 2.7 .3(2.7)+.3(0.5)=0.96

Hotels 1.9 2.1 .3(2.1)+.3(1.9)=1.2

Medical stores 1.0 3.5 .3(3.5)+.3(1.0)=1.35

Airports 0.7 2.5 .3(2.5)+.3(0.7)=0.96

Supermarkets 0.6 3.9 .3(3.9)+.3(0.6)=1.35

Schools 1.2 3.1 .3(3.1)+.3(1.2)=1.29

Online markets 0.7 2 .3(2)+.3(0.7)=0.81

Decision:
1. Under the maximax or optimistic criterion hospitals and airports is the optimal act.
2. Under the maximin or pessimistic criterion hospitals is the optimal act.
3. Under the Laplace or equally likely probability hospitals and airports in the optimal act.
4. Under the Minimax or regret criterion hospitals in the optimal act.
5. Under the hurwicz criterion super markets in the optimal act.
 Decision analysis break even
Break-even point:
Fixed expense = 80000 taka
Per unit variable expense = 41 taka
Per unit selling price =100 taka

¿ expense
 Break-even point (q) ¿
P−V

80000
¿
100−41

= 1355 unit

 Total cost at break-even = Vq + F

= 41×1355+80000
= 135.555

 Total revenue(R) = pq – 100 × 1355

=135500 taka

If Aloesooth ltd. want profit of 200000 taka

80000+200000
 Q¿
100−41
=4746 units
  Total cost (c) =Vq + F
= 41×4746+80000
= 274586 taka

 Revenue = Pq
= 100×4746
= 474600 taka

 Profit =R–C
= 474600 – 274586
=200014 taka

Inventory

The company will use 552 tons of Isopropyl Alcohol (99%) in making hand sanitizer. The cost of
carrying cost 400 taka per ton. Cost of ordering 14000 / 400 taka.
D=552 ton
K=14000 taka
h=400 taka

2 KD
 Optimum order quantity (Y)= √ h

2 ×14000 ×352
=√
400

= 196.57

KD hy
 TCU = +
Y 2
14000× 552 400 ×196.57
= +
196.57 2
= 39314 + 39314
 = 78628 taka
1
 Number of Order = t °

D
= Y

562
= 196.57
 Time between order
Y
t°=
D

196.57
= 552

= 0.36

Quality Management

The firm will produce 7800 unit of hand sanitizer per day. Percentage of good quality is
90%, rework 0 unite, manufacturing cost per unit 37 taka.

Here,
I = 7800
G=90%
R= 0

Y = (I) (%G) + (I) (1-%G) (%R)

= (7800) (.90) + (7800) (1- .9) (0)
= 7020 unit

( kD ) ( I ) +(Kr)(R)
 Production cost =
Y
 ( 37 ) (7800 )+ ( 0 ) (0)
=
7020
= 41 taka per unit