Abdul Ghoffaar Noorwandi (29122052) YP67B

A. Description of the Problem

This case is taken from personal experience setting up a food & beverage business with
friends. Crusty Crumb is an SME established in 2020 engaged in Bandung's food and
beverage sector. Crusty Crumb's main product is soft cookies, with other sub-products such
as brownies and mini cookies. Initially, sales were only limited to the family environment, but
the company began to consider adding more expansive market coverage.

Still, in 2020, Crusty Crumb started their mission to increase market coverage, but at that time,
there was a pandemic, so Crusty Crumb's sales were on an online basis both through social
media and online store platforms. At first, the market responded very positively, where every
month there was an increase in sales, but in 2022 there will be a stagnation in sales and even
a decline in sales trends.

Exhibit 1. Crusty Crumb Sales Target Graph 2022

140%
120%
100%
80%
60%
40%
20%
0%
Q1 Q2 Q3 Q4

Soft Cookies Brownies Mini Cookies

In the first quarter, Crusty Crumb's sales performance was excellent; all products exceeded
the predetermined sales target above 100%. Still, sales stagnant occurred in the next quarter,
and even in quarter 4, all products did not reach the sales target. Development is necessary
so that the underlying factors for Crusty Crumb's business development are added to their
offline sales base. The company plans to work with cafes in Bandung to distribute its products.
The company's products have a relatively short expiry date, so SOPs for product
manufacturing must be paid close attention to, as the risk of prescription theft when working
with other parties. In this case, this paper was created to find the best alternative for what
product should be distributed and where the company should distribute it. Therefore,
the selection of criteria is based on the company's needs. These criteria are Production,
Distribution, and Legal.
 Abdul Ghoffaar Noorwandi (29122052) YP67B
Identify Concern Set Priority Determine Analysis Needed Determine Help Needed
List Treat & Separate and Current Impact Future Impact Time Frame Priority Process Action Needed Who Does What and When
Opportunity Clarify Concerns
Production Production M. Struggling to H. Product shortage L. For the 3 SA Analyze the trend to Production Dept - The production
Capacity Level determine the best or excess on the long run determine what is the department will analyze if the trend to
amount of product must market, lead the most optimal quantity determine quantity produces
be produced company to of product must be
unmaximazed profit produce
Standard L. Bad SOP can lead to H. Brand image and L. For the 2 PPA The SOP of the Production Dept - Analyze the SOP
Operating bad product output and brand reputation can long run production must be production aspect
Procedure of the product quality be ruined analyze more deeply to
Production create improvement to
prevent a new
production problem
Distribution Best Alternative H. The type of the H. The company H. Short 4 DA There should be Business Development and
Product product adapt with product doesnt suits run analysis in the Distribution Dept - Both departement
market prefference in market prefference so company product will collaborate in order to choose the
order to maximze sales there chance the alternatives best alternative possible product
product is not sold
Place of H. The place of M. Maintain market L. For the 5 DA Do some place Business Development Dept and
Distribution distribution have their enggament in each long run analysis in order to Distribution Dept - Both departement
own market, and the distribution place maintain distribution will collaborate to analyze where is
market company product effectiveness. the best place to distribute the
must suits the market. product
Legal Patent of the L. Company can still H.There's a chance L. For the 1 PA Make a patent and Legal Dept - Investigate the root
Brand and operating normal as that patents on long run upcoming legal cause about the legal of the company
Product usual products and brands problem mitigation and create an necessary action
are copied by other
parties

Additional Information related to Time Frame:

H: Under 1 Month

L: Above 3 Month
Abdul Ghoffaar Noorwandi (29122052) YP67B

The use of System 2 in carrying out decision-making problems aims to avoid bias and traps
compared when using system 1, where in this case, the decision-making problem being
carried out is the selection of the Crusty Crumb product distribution café and the types of
products distributed. The AHP tools are used to determine the cafe where the product will be
distributed, while the SMART tools will be used to determine the products to be distributed

B. AHP Analysis

The criteria selected in the AHP analysis are adjusted to the company's needs, considering
the engagement market, consignment price, and kitchen availability where the products are
distributed.

1. Scooring and weightned results for each café and criteria

Kitchen Dejima Meetpot Kokua Weightned CR
Availibility

Dejima 1 0.14 0.25 0.07 0.008

Meetpot 7 1 4 0.69

Kokua 4 0.25 1 0.22

Engagement Dejima Meetpot Kokua Weightned CR

Market

Dejima 1 7 5 0.74 0.001

Meetpot 0.14 1 0.5 0.09

Kokua 0.2 2 1 0.16

Consigment Dejima Meetpot Kokua Weightned CR

Price

Dejima 1 0.33 2 0.23 0.000

Meetpot 3 1 5 0.64

Kokua 0.5 0.2 1 0.12

Criteria Market Consignment Kitchen Weightned CR

Engagement Price Availibility

Market 1 0.25 5 0.257 0.001

Engagement

Consignment 4 1 8 0.679
Price
Kitchen 0.2 0.12 1 0.075
Availibility

2. Ranking Alternatives
Weightned Cafe Weightned Total

Market Engagement 0.257 Dejima 0.74 0.19018

Meetpot 0.09 0.02313

Abdul Ghoffaar Noorwandi (29122052) YP67B

Kokua 0.16 0.04112

Consignment Price 0.679 Dejima 0.23 0.15617

Meetpot 0.64 0.43456

Kokua 0.12 0.08148

Kitchen Availibility 0.075 Dejima 0.07 0.00525

Meetpot 0.69 0.05175

Kokua 0.22 0.0165

Alternatives Total Score

Dejima 0.3516

Meetpot 0.50944

Kokua 0.1391

Total 1

C. SMART Analysis

The criteria selected in the SMART analysis follow the company's product specifications,
namely price, product shelf life, flavor variants, production costs, production time, market
engagement, and the uniqueness of the product.

1. Determine Weight of Alternatives using Direct Rating

Alternatives Price Product Variant Production Production Market Uniqeness
Life Time of Flavor Cost Time Engagement
Soft Cookies 50 100 100 50 50 100 50
Brownies 100 50 50 0 0 50 0
Mini Cookies 0 0 0 100 100 0 100

Operational Cost
Atribute Value Normalized Weight
Production Cost 100 0.477
Production Time 40 0.191
Product Life Time 70 0.334

Operational Benefit
Atribute Value Normalized Weight
Price 100 0.435
Uniqeness 70 0.305
Variant of Flavor 40 0.174
Market Engagement 20 0.087
Abdul Ghoffaar Noorwandi (29122052) YP67B

2. Calculating Aggregate of Weighted Value

Cost
Weight 0.477 0.191 0.334
Aggregate of Weight Value
Product Production Cost Production Time Product Life Time
Soft Cookies 50 50 100 67
Brownies 0 0 50 17
Mini Cookies 100 50 0 57

Benefit
Weight 0.435 0.305 0.174 0.087
Aggregate Weight Value
Product Price Uniqeness Variant of Flavor Market Engagement
Soft Cookies 50 50 100 100 63.10
Brownies 100 0 50 50 56.55
Mini Cookies 0 100 0 0 30.50

Atribute Value Weight

Benefit 100 0.556
Cost 80 0.444

Alternatives Total Score

Soft Cookies 64.74
Brownies 38.84
Mini Cookies 42.39

D. Conclusion

Based on the analysis conducted using AHP and SMART, the best alternative for Crusty
Crumb is distributing products through Meetpot cafés with soft cookie products.