SnowPea Delivery

Katie MunchelEddie PearsonRob Glycenfer

Our IntroductionTeam of consultants for SnowPea Chinese restaurant

analyzing delivery tendencies to better optimize profit and increasing business.

Important Variables:•Deliverer - Person who made the delivery – 4 total•Prep Time – Time from when order was placed until deliverer started trip•Travel Time - Time traveled from SnowPea to customer.

•Total Time= Prep Time + Travel Time•Distance – Distance(in miles) from SnowPea to customer.

Breakdown of Orders/Deliverer

Deliverer #1

Deliverer #2

Deliverer #3

Deliverer #4

Driver #1

Prep Time – 11.3 minutes

Travel Time – 12.2 minutes

Distance – 138.2 miles

Average Speed- 26.61 mph

Driver #2Prep Time – 11. 8 minutes

Travel Time – 14.7 minutes

Distance – 130.7 miles

Average Speed- 30.41 mph

Driver #3

Prep Time – 11.1 minutes

Travel Time – 19.7 minutes

Distance – 113.7 miles

Average Speed- 20.91 mph

Driver # 4Prep Time – 12.0 minutes

Travel Time – 20.2 minutes

Distance – 93.6 miles

Average Speed- 17.66 mph

Distance Distribution in Miles

0-2.5 2.5-5 5-7.5 7.5-10 10-12.5 12.5-150

5

10

15

20

25

30

# OF ORDERS

MILES TRAVELED TO CUSTOMER

Prospective Advertisement

Deliveries within: 10 mile radius (required) 25 minute delivery time?

Including prep time and travel time Can we deliver on time more than ½ of the

time?

All qualifying orders over time guarantee: $10 gift certificate How many will we be giving out?

Is SnowPea able to achieve desired delivery time more

than half the time?

Desired Delivery Time: 10 mile radius Under 25 minutes (Total Time)

Null: SnowPea delivers on time MORE THAN half the time.

π > 0.5

Alternative: SnowPea doesn't deliver on time more than half the time.

π ≤ 0.5

test statistic (obs) 0.88 ZOBS

critical measure 1.64 ZCRIT

ZOBS > ZCRIT? Accept

p-value 0.37782

α-level 0.10

p-value < α-level? Acceptsample proportion=0.56population proportion= 0.5

(reference value)std error= 0.063sample size= 16 # of tails: 2

Application

• Likelihood of not meeting requirements?•P-value= 38%

• Out of 100 orders?•($380.00)

Does Driver #3 really drive slower than the average?

Null: Driver #3 doesn’t drive slower than the average.µ≥ 24.3

Alternative: Driver #3 drives slower than the average. µ< 24.3

sample mean= 20.46population mean= 24.3std dev.= 5.8sample size= 17 # of tails= 16degrees of freedom=1

test stat. (obs) -2.73 TOBS

critical measure 1.34 TCRIT

TOBS > TCRIT? YES

p-value 0.01

α-level 0.10

p-value < α-level? YES

Does Driver #4 really drive slower than the average?

Null: Driver #4 doesn’t drive slower than the average.

µ≥ 24.3

Alternative: Driver #4 drives slower than the average.

µ< 24.3

test stat. (obs) -6.32 TOBS

critical measure 1.34 TCRIT

TOBS > TCRIT? yes

p-value 0.00

α-level 0.10

p-value < α-level? yes

sample mean= 17.66population mean= 24.3std dev.= 4.2sample size= 16# of tails= 15degrees of freedom=1

So what does this mean?

Driver #3 and #4 are below the company average speed.

Driver #3 and #4 need to pick up their speed or we recommend…

“YOU’RE FIRED”

CONCLUSION

1. DECIDE HOW IMPORTANT SPEED IS TO SNOWPEA AND TAKE APPROPRIATE ACTIONS.

2. IF GROSS REVENUE EXCEEDS THE AMOUNT LOST OUT OF 100 ORDERS WE WOULD RECOMMEND USING THE PROPOSED

ADVERTISEMENT IDEA.