Question
I need the answers to part C a) Use the spatial interaction model to estimate the demand that would be captured by the new PlantTime
I need the answers to part C
a) Use the spatial interaction model to estimate the demand that would be captured by the new PlantTime store.
Demand captured by PlantTime = 10000 * (2500 / 10000) * exp(-0.2 * (10+22.36+10+14.14+5)) = 10000 * 0.25 * exp(-12.9) = 155.72
Demand captured by PlantTime = _155.72_
(5 pts.) b) Suppose the PlantTime store is located at (20,10), but it isnot 2,500 square feet. Use the spatial interaction model to find thesize in square feet for the new PlantTime store that would allow it to capture a demand as close as possible to $7,000 per week.
7000 = 10000 * (x / 10000) * exp (-0.2 * (10+22.36+10+14.14+5))
0.7 = 0.25 * exp(-12.9) * x
x = 0.7 / (0.25 * exp(-12.9)) x 1489.41
PlantTime store size = _1489.41__
(4 pts.) c) Use the original size for the PlantTime store of 2,500 square feet. Suppose there is a road that goes straight from coordinates (20,0) to (20,25) (a north-south road) and the PlantTime store must be on this road. Thus, the x-coordinate for PlantTime must be 20. Use the spatial interaction model to find alocation for the PlantTime store along this road (with x-coordinate = 20) that would allow it to capture the maximum amount of demand. What are the coordinates of this new location for PlantTime - and what is the demand captured for PlantTime?
Location = (20,_____ )
Demand captured by PlantTime =__________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started