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The Delivery Boy Dilemma!

Problem Statement:

On average, a swiggy delivery boy earns Rs 20 per order and delivers 5 orders per hour. Deep earned Rs 17,000 last week. How many hours did he work? Options: 100, 170, 200, 270

Solution:

On average, a delivery boy earns Rs 100 per hour (Rs 20 per order × 5 orders per hour). Deep can earn more than Rs 100 or less than Rs 100 depending on location, demand, distance and other factors, given the provided numbers are average earning of all delivery boys.


However, since there are only 168 hours in a week, it is impossible to work anything beyond 168 hours. Given this real-world constraint, the only practical possible solution is 100.

This example highlights the importance of considering constraints in business scenarios. Calculating revenue, growth, or profits based purely on formulas can lead to illogical conclusions if constraints like time, capacity, or market limitations are not taken into account.

Applications in Other Industries

Several industries face similar situations where real world constraints becomes very important to consider while projecting growth, profit, bookings etc.

Manufacturing: A factory may calculate potential output based on machine efficiency and worker shifts, but equipment downtime, maintenance schedules, and labor availability are constraints that must be factored in for realistic production targets.
Retail: While a store may forecast high sales based on marketing efforts, constraints such as inventory limits, store capacity, and supply chain disruptions can affect the actual revenue, requiring careful planning and adjustment of expectations.
Hospitality: Hotels may project revenue based on average room rates and occupancy percentages. However, constraints such as seasonal demand fluctuations, events in the area, and competitive pricing strategies can significantly impact actual revenue, necessitating adjustments to forecasts and pricing strategies.

Takeaway

When calculating key business metrics such as revenue, profits, or growth, it is essential to account for real-world constraints like time, capacity, resources, and external limitations. Ignoring constraints may lead to overly optimistic or incorrect projections, resulting in flawed decision-making. Business leaders must always ensure that calculated numbers align with feasible operational limits for realistic planning.

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