Forecasting demand for food at Apollo hospitals Harvard Case Solution & Analysis

Introduction

Apollo hospital is one of the largest hospital in India, which operates 32 hospitals across the country. Apollo hospital Bangalore is currently facing problem of food wastage and extra cost implemented on it. It has been analyzed that the food bill of hospital is accounted for 4% of its cost. The hospital is currently serving 120 food items to approximately 230 patients and their attendees. It has been estimated that food demand would be dependent on number of patients currently being treated in the hospital. However, the food distributed among patients is dependent on their food diets and restrictions from nutritionist. Consequently, it has been estimated that the patients would be likely to order same foods in their complete hospital stay.

Problem statement

The food cost of hospital is increasing. Food cost includes raw material, such as meat, vegetables and chicken.Moreover, the leftovers are also considered as hospital is preparing 10% extra food so that there would be no problem and deficiency of the respective food. The food is distributed for five times which includes breakfast beverage, breakfast, lunch, dinner and bed time beverage. The company wants to develop a forecasting model which would help the hospital to decrease its food cost and wastages such as pre food and post food wastages. Moreover, the results in futurewhen the hospital would be expanded. And the limitations of the model.
Forecasting demand for food at Apollo hospitals Harvard Case Solution & Analysis

Analysis

As the information provided in the case, it has been analyzed that the consumption of rice is 75 servings per day. In addition to meet deficiencies, company made 45 servings extra that is due to using past experiences data such as 20% and the excess food of 20% to avoid any deficiencies. However, this much precautions shows that despite of meeting demand of 84 servings, company had made 120 plates, which is 11% extra. In order to have estimated demand in order to save company from food excess and pre food and post food wastage, a model has been prepared to help the company.

Moreover, the company has been using manual style to calculate per day demand and the servings is estimated by the cook. However, this model would be requiring software through which actual demand would be calculated. However, once demand is calculated it would be easy for the company to calculate required raw material.

Model explanation

A model have been designed to calculate the forecasted demand in order to prevent the company from wastage of food. However, to use this model company should gather the data, not manually, but through technology usage such as special software. For the meantime, the collected data should be entered into the provided excel model.

The limitations of the model includes the number of dishes that have been facilitated and mentioned in the brochure.Moreover, the list of diets is also limited and is assumed that only these would be required by patients.However, there is no limitations on the number of patients so that the model will remain same if the company wished to expand the number of bed or used in other campuses of hospital..........................

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