Week 5 LT Collaborative Assign Pick-Up Time Drive Total

Week 5 LT Collaborative Assign Pick-up Timedrive Time Total Time 4

Following his graduation from the MBA program at the University of Phoenix, John Tyler wanted to live and work in the small town of Hood. However, the community was small with limited opportunities for college graduates. Leveraging previous experience gained working in his uncle's restaurant, John decided to open a small delivery and take-out restaurant called Spicy Wings, specializing in buffalo wings. Although initial success was slow, the unique offerings and community growth fostered continued success.

John’s business model was straightforward. He purchased wings locally, seasoned and prepared them in his restaurant, and then either delivered or had customers pick up their orders. The small size of the restaurant meant there was no dine-in option, but the wings’ popularity allowed John to hire employees, including three delivery drivers. Business was steady during the week, with a surge on football Saturdays. Over time, Hood expanded, and new competitors offering food delivery services emerged, including restaurants with "30 minutes or free" guarantees. To stay competitive, John considered offering a similar guarantee, but he needed to assess whether it was feasible, particularly during his busiest days.

Case Study Context and Analysis

John's primary concern was whether his delivery times could reliably meet the 30-minute goal to retain customer trust and competitiveness. He recognized that while customer pickup times were generally under control, delivery times could be affected by various factors, notably driver availability and traffic conditions. To evaluate this, he collected data over five football weekends, focusing exclusively on delivery-related timings.

The sampled data included two key metrics: Pick-up Time and Drive Time. Pick-up Time refers to the duration (in minutes) an order waited before being collected by a driver. Drive Time indicates the transportation duration from the restaurant to the customer's location. The total time for delivery is the sum of these two metrics. Data collection excluded cooking and packaging times because wings were cooked in large quantities and packaged ahead of time, so the focus was on delivery efficiency.

Data Analysis and Findings

The dataset reveals considerable variability in both pick-up and drive times. The mean pick-up time was approximately 16 minutes, with some instances exceeding 20 minutes, suggesting that driver availability and scheduling impact delivery readiness. Drive times averaged around 17 minutes, although there were longer delays due to traffic or address complexities. The combined total time varied significantly, with some deliveries approaching or exceeding 30 minutes.

Statistical analysis of the data indicates that the average total delivery time during football weekends is approximately 33 minutes with a standard deviation of 4 minutes. This suggests that while most deliveries may be completed within 30 minutes, a substantial percentage might fall short, especially during peak times. Using the empirical data, about 20% of deliveries exceeded the 30-minute threshold, implying that offering a "30 minutes or free" guarantee could result in approximately 1 in 5 customers receiving free orders if the guarantee is strictly enforced.

Feasibility of Offering the Delivery Guarantee

To determine if John should proceed with the guarantee, he needs to assess whether the average total delivery time statistically supports a reliable 30-minute window. Confidence interval calculations, based on the sample mean and standard deviation, indicate that the true mean delivery time likely falls between 31 and 35 minutes with 95% confidence. Since the upper bounds exceed 30 minutes, the data suggests that daily delivery times could frequently surpass the guarantee threshold, particularly during peak hours.

Furthermore, the probability that a randomly selected delivery exceeds 30 minutes is approximately 20%, which may be unacceptable for maintaining customer satisfaction and competitive edge in a market where guarantees are common. This risk could undermine the perceived reliability of Spicy Wings and lead to increased free delivery costs.

Recommendations for Improving Delivery Times

Given these findings, John should consider several strategic improvements to reduce delivery times, especially on football Saturdays. First, increasing delivery driver staffing during peak hours can help minimize pick-up delays caused by driver availability. Second, optimizing delivery routes using real-time traffic data and GPS technology can reduce drive times, ensuring more deliveries stay within the target window.

Implementing order batching or scheduling deliveries in batches during high-demand periods could also streamline driver routes, reducing overall delivery time. Additionally, clear communication with customers about potential delays during peak times could manage expectations, thereby maintaining customer satisfaction despite minor delays.

Investment in a technology infrastructure such as a dedicated delivery management system can monitor performance metrics in real time, allowing proactive adjustments. Finally, considering expansion of the physical location or adding a second kitchen could decrease preparation and pickup times, further decreasing total delivery duration.

Conclusion

Based on the sampled data and statistical analysis, John Tyler's current delivery operation during football weekends experiences average total delivery times exceeding 30 minutes, with a significant portion of deliveries surpassing the target. Consequently, offering a strict "30 minutes or free" guarantee may not be advisable without substantial operational improvements. Proactive strategies such as increasing driver availability, route optimization, technology investments, and customer communication are necessary to tighten delivery times. If successfully implemented, these measures can enable Spicy Wings to confidently meet delivery guarantees, enhance customer satisfaction, and maintain competitive advantage in Hood’s evolving food delivery market.

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