Monday, 24 February 2014

Branch Management for Businesses with 10,000 total customers per day


Welcome to the Optimal Outlet Curve Series. This set of guides is designed to help businesses identify the additional number of outlets they require to meet their present demand simply by looking up a chart (which is provided for each case study).

For this series (#1), we are considering a business with a total of 10,000 customers per day. Most small and medium scale businesses fall into this category. 

These 10,000 customers per day are spread across all geographic regions in which the business may operate, including states, cities and counties. It is the total estimate of people using the business' outlets per day.

[Related Article: How to Determine Your Optimal Number of Business Outlets]
 
Assumptions

The curve provided below can be used to accurately determine how many additional outlets are needed to contain present demand on the basis of an overcapacity ratio and branch capacity.

The overcapacity ratio is an expression of the maximum overload any particular business branch can endure, and is given as 20% for the sake of this case study. This means that we assume that every branch in the business network can take no more than 20% of its designed capacity e.g. an outlet designed to service 100 people per day having a maximum of 120 customers per day.

Branch capacity is simply the design capacity of each branch in the business network. 

To generate the curve, we plot data for an increasing number of saturated outlets (currently existing outlets that are going over capacity) as well as increasing branch capacity, so businesses can select the one that best fits their current situation.

Chart #1: 5 Saturated Outlets  

If your business services no more than 10,000 customers per day and you currently have 5 outlets that are going over capacity, use the chart below to determine how many additional outlets you need to have to meet your present demand simply by selecting the branch capacity that matches your outlets (on the x-axis) and moving it up to touch the curve. Once you touch the curve, read off the corresponding value on the y-axis for your additional number of outlets required.






Chart #2: 10 Saturated Outlets

If your business services no more than 10,000 customers per day and you currently have 10 outlets that are going over capacity, use the chart below to determine how many additional outlets you need to have to meet your present demand simply by selecting the branch capacity that matches your outlets (on the x-axis) and moving it up to touch the curve. Once you touch the curve, read off the corresponding value on the y-axis for your additional number of outlets required.

 


Chart #3: 15 Saturated Outlets  

If your business services no more than 10,000 customers per day and you currently have 15 outlets that are going over capacity, use the chart below to determine how many additional outlets you need to have to meet your present demand simply by selecting the branch capacity that matches your outlets (on the x-axis) and moving it up to touch the curve. Once you touch the curve, read off the corresponding value on the y-axis for your additional number of outlets required.







Chart #4: 20 Saturated Outlets  

If your business services no more than 10,000 customers per day and you currently have 20 outlets that are going over capacity, use the chart below to determine how many additional outlets you need to have to meet your present demand simply by selecting the branch capacity that matches your outlets (on the x-axis) and moving it up to touch the curve. Once you touch the curve, read off the corresponding value on the y-axis for your additional number of outlets required.