Your fast-food outlet, Burger Queen, has obtained a license to open branches in three closely situated South African cities: Brakpan, Nigel, and Springs. Your market surveys show that Brakpan and Nigel each provide a potential market of 2,500 burgers a day, while Springs provides a potential market of 1,000 burgers per day. Your company can only finance an outlet in one of those cities at the present time. Your main competitor, Burger Princess, has also obtained licenses for these cities, and is similarly planning to open only one outlet. If you both happen to locate at the same city, you will share the total business from all three cities equally, but if you locate in different cities, you will each get all the business in the cities in which you have located, plus half the business in the third city. The payoff is the number of burgers you will sell per day minus the number of burgers your competitor will sell per day. Set up the payoff matrix.

Your fast-food outlet, Burger Queen, has obtained a license to open branches in three closely situated South African cities: Brakpan, Nigel, and Springs. Your market surveys show that Brakpan and Nigel each provide a potential market of 2,500 burgers a day, while Springs provides a potential market of 1,000 burgers per day. Your company can only finance an outlet in one of those cities at the present time. Your main competitor, Burger Princess, has also obtained licenses for these cities, and is similarly planning to open only one outlet. If you both happen to locate at the same city, you will share the total business from all three cities equally, but if you locate in different cities, you will each get all the business in the cities in which you have located, plus half the business in the third city. The payoff is the number of burgers you will sell per day minus the number of burgers your competitor will sell per day. Set up the payoff matrix.

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...

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Concept explainers

Intermittent Process

The term intermittent means something which begins & stops in between at intervals which are not regular.

Question

Your fast-food outlet, Burger Queen, has obtained a license to open branches in three closely situated South African
cities: Brakpan, Nigel, and Springs. Your market surveys show that Brakpan and Nigel each provide a potential market
of 2,500 burgers a day, while Springs provides a potential market of 1,000 burgers per day. Your company can only
finance an outlet in one of those cities at the present time. Your main competitor, Burger Princess, has also obtained
licenses for these cities, and is similarly planning to open only one outlet. If you both happen to locate at the same city,
you will share the total business from all three cities equally, but if you locate in different cities, you will each get all the
business in the cities in which you have located, plus half the business in the third city. The payoff is the number of
burgers you will sell per day minus the number of burgers your competitor will sell per day. Set up the payoff matrix.
O a.
Your Competitor
B
N
S
Вг
1,5001
You N
1,500
sl-1,500 -1,500
b.
Your Competitor
В
N
В г
1,500 1,500]
You N -1,500
sl-1,500 -1,500
1,500
Your Competitor
В N
С.
В г 1,500
You N
1,500
1,500.
O d.
Your Competitor
B
N
S
B
-1,500 1
-1,500
You N
sl1,500 1,500
Your Competitor
е.
B
N
Вг-1,500
You N
-1,500
SL
-1,500]

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