4. Customer demands are uniformly distributed between 0 and 1 at a linear line. There are three suppliers A, B, and C, located at
4. Customer demands are uniformly distributed between 0 and 1 at a linear line. There are three suppliers A, B, and C, located at 0.3, 0.5 and 0.9, respectively (as shown in the following figure). Note that customers will choose a supplier whom is closer to her/him. What are the market shares of suppliers A, B and C, respectively? What is the average traveling distance for all of customers? (10%) 0 A 0.3 B + 0.5 0.9 1
Step by Step Solution
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Step: 1
To determine the market shares of suppliers A B and C we need to understand the distribution of cust...
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Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
