ChocoTown has a 4,000 square foot outlet store that serves five major customer regions, denoted A, B, C, D and E. The locations of the points representing the customer regions and their weekly demands are shown in the table below. The ChocoTown outlet store is at location (10,20). Customer Region   Location Demand ($/week) A (0,10) 4,000 B (0,20) 2,000 C (20,0) 4,000 D (30,20) 3,000 E (40,10) 2,000   CandyTime is a new competitor of ChocoTown and they are considering opening a 4,000 square foot store at location (30,10). Assume the travel time from location i to j in minutes equals the straight line distance from i to j.    a)    Use the spatial interaction model to estimate the demand that would be captured by the new CandyTime store. Demand captured by CandyTime = ___________ b)    Suppose the CandyTime store is located at (30,10), but it is not 4,000 square feet. Use the spatial interaction model to find the size in square feet for the new CandyTime store that would allow it to capture a demand as close as possible to $10,000 per week.    CandyTime store size = _________    c)    Use the original size for the CandyTime store of 4,000 square feet. Suppose there is a road that goes straight from coordinates (0,10) to (40,10) and the CandyTime store must be on this road. Thus the y-coordinate for CandyTime is 10. Use the spatial interaction model to find a location for the CandyTime store along this road (with y-coordinate = 10) that would allow it to capture the maximum amount of demand. What are the coordinates of this new location – and what is the demand for CandyTime?   Location =  (_______, 10)       Demand captured by CandyTime = __________

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

ChocoTown has a 4,000 square foot outlet store that serves five major customer regions, denoted A, B, C, D and E. The locations of the points representing the customer regions and their weekly demands are shown in the table below. The ChocoTown outlet store is at location (10,20).

Customer

Region

 

Location

Demand

($/week)

A

(0,10)

4,000

B

(0,20)

2,000

C

(20,0)

4,000

D

(30,20)

3,000

E

(40,10)

2,000

 

CandyTime is a new competitor of ChocoTown and they are considering opening a 4,000 square foot store at location (30,10). Assume the travel time from location i to j in minutes equals the straight line distance from i to j. 

 

a)    Use the spatial interaction model to estimate the demand that would be captured by the new CandyTime store.

Demand captured by CandyTime = ___________

b)    Suppose the CandyTime store is located at (30,10), but it is not 4,000 square feet. Use the spatial interaction model to find the size in square feet for the new CandyTime store that would allow it to capture a demand as close as possible to $10,000 per week. 

 

CandyTime store size = _________ 

 

c)    Use the original size for the CandyTime store of 4,000 square feet. Suppose there is a road that goes straight from coordinates (0,10) to (40,10) and the CandyTime store must be on this road. Thus the y-coordinate for CandyTime is 10. Use the spatial interaction model to find a location for the CandyTime store along this road (with y-coordinate = 10) that would allow it to capture the maximum amount of demand. What are the coordinates of this new location – and what is the demand for CandyTime?

 

Location =  (_______, 10)    

 

Demand captured by CandyTime = __________

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.