Abstract—In the last two years global economic crisis has devastated almost all business sectors. However, the fast food sector is a one of the industries that has managed to be saved from the crisis. The industry is experiencing phenomenal growth that has been stimulated by the consecutive increases of consumer consumption and capital investment in many countries. Investments into the sector create ever growing furious competition expanding in the global markets.
In this study, a simulation optimization spreadsheet model was proposed for the decision of expanding operations in the fast-food industry. The model was presented via a hypothetical illustrative example and was aimed to determine optimum number of stores and their locations considering uncertain market conditions. The problem was solved by the use of “RISKOptimizer” optimization software, which has been recently introduced and is a simultaneous application of the Monte Carlo simulation and genetic algorithm.
Index Terms—Decision Making, Fast-Food Industry, Simulation Optimization, Uncertainty.
School of Business, Istanbul University. IU Isletme Fak. Avcilar, Istanbul,Turkey (phone: 90212-4737070; fax: 90212-5904000; e-mail:email@example.com).
Cite: Seyhan Sipahi, Senior Member, IACSIT, "Expanding Operations in Fast-Food Industry under Uncertain Market Conditions," International Journal of Trade, Economics and Finance vol. 1, no. 1, pp. 74-79, 2010.