Beruflich Dokumente
Kultur Dokumente
Submitted By
Kunal Singh
Roll No: 2010C43
SCMHRD, Pune
CASE FACTS:
Athol Furniture, Inc. (AFI) is a growing regional chain of discount furniture and largeappliance stores.
Management has targeted the small city of Bluff Lake as the next location for a retail outlet.
X, Y, and Z are the possible sites that AFI could use for a retail store.
Map of bluff lake:
Market Data:
Minimum Travel time between potential & existing sites and block groups in minutes
Relationship of size of store to margin on sales, Expenses & Net operating profit as a
percent of sales
The minimum Travel time between potential & existing sites and block groups in minutes is:
Site
X
Y
Z
1
16
12
7
2
14
10
5
3
14
10
5
4
16
12
7
8
6
3
4
9
4
2
3
10
4
4
10
11
2
2
10
Calculation of Attractiveness:
Attractiveness to facility j to consumer i
Aij = Sj / Tij
Where Sj = Size of facility j
Tij = Travel time of Customer of is location to facility j
Attractiveness of each site for each location are calculated below using the above formula.
Attraction to site X
AX1
937.5
AX2
1071.4
AX3
1071.4
AX4
937.5
AX5
1153.8
AX6
1875.0
AX7
2142.9
AX8
2500.0
AX9
3750.0
AX10
3750.0
AX11
7500.0
AX12
7500.0
12
2
5
13
Attraction to site Y
AY1
1666.7
AY2
2000.0
AY3
2000.0
AY4
1666.7
AY5
2222.2
AY6
4000.0
AY7
5000.0
AY8
6666.7
AY9
10000.0
AY10
5000.0
AY11
10000.0
AY12
4000.0
Attraction to site Z
AZ1
1428.6
AZ2
2000.0
AZ3
2000.0
AZ4
1428.6
AZ5
2500.0
AZ6
5000.0
AZ7
10000.0
AZ8
2500.0
AZ9
3333.3
AZ10
1000.0
AZ11
1000.0
AZ12
769.2
Attractiveness
AX1
937.5
AY1
1666.7
AZ1
1428.6
Ai1
4032.7
AX2
1071.4
AY2
2000.0
AZ2
2000.0
Ai2
5071.4
AX3
1071.4
AY3
2000.0
AZ3
2000.0
Ai3
5071.4
AX4
937.5
AY4
1666.7
AZ4
1428.6
Ai4
4032.7
AX5
1153.8
AY5
2222.2
AZ5
2500.0
Ai5
5876.1
AX6
1875.0
AY6
4000.0
AZ6
5000.0
Ai6
10875.0
AX7
2142.9
AY7
5000.0
AZ7
10000.0
Ai7
17142.9
AX8
2500.0
AY8
6666.7
AZ8
2500.0
Ai8
11666.7
AX9
3750.0
AY9
10000.0
AZ9
3333.3
Ai9
17083.3
AX10
3750.0
AY10
5000.0
AZ10
1000.0
Ai10
9750.0
AX11
7500.0
AY11
10000.0
AZ11
1000.0
Ai11
18500.0
AX12
7500.0
AY12
4000.0
AZ12
769.2
Ai12
12269.2
Calculation of Probability:
Now we will calculate the probability of a consumer from a given area travelling to a shopping site.
0.232
PY1
0.413
PZ1
0.354
PX2
0.211
PY2
0.394
PZ2
0.394
PX3
0.211
PY3
0.394
PZ3
0.394
PX4
0.232
PY4
0.413
PZ4
0.354
PX5
0.196
PY5
0.378
PZ5
0.425
PX6
0.172
PY6
0.368
PZ6
0.460
PX7
0.125
PY7
0.292
PZ7
0.583
PX8
0.214
PY8
0.571
PZ8
0.214
PX9
0.220
PY9
0.585
PZ9
0.195
PX10
0.385
PY10
0.513
PZ10
0.103
PX11
0.405
PY11
0.541
PZ11
0.054
PX12
0.611
PY12
0.326
PZ12
0.063
No. of Households
730
1130
1035
635
160
105
180
125
280
350
75
50
125
470
305
1755
900
290
60
115
90
265
215
370
2
3
4
5
6
7
8
9
10
11
12
Ejk = PijCiBik
Ci = Number of consumer at area i
Bik= Average annual amount budgeted by the
consumer of area i for a product class k
30546.9
EY1
54305.5
EZ1
46547.6
EX2
29841.5
EY2
55704.2
EZ2
55704.2
EX3
61225.4
EY3
114287.3
EZ3
114287.3
EX4
51667.0
EY4
91852.4
EZ4
78730.6
EX5
2356.4
EY5
4538.2
EZ5
5105.5
EX6
905.2
EY6
1931.0
EZ6
2413.8
EX7
937.5
EY7
2187.5
EZ7
4375.0
EX8
11582.1
EY8
30885.7
EZ8
11582.1
EX9
6025.6
EY9
16068.3
EZ9
5356.1
EX10
178875.0
EY10
238500.0
EZ10
47700.0
EX11
78445.9
EY11
104594.6
EZ11
10459.5
EX12
65590.9
EY12
34981.8
EZ12
6727.3
EX
517999.4
EY
749836.6
EZ
388989.0
Census block
group
No. of
customers
Customer
Spending
1
2
3
4
5
6
7
8
9
10
11
12
730
1130
1035
635
160
105
125
470
305
1755
900
290
180
125
280
350
75
50
60
115
90
265
215
370
131400
141250
289800
222250
12000
5250
7500
54050
27450
465075
193500
107300
Total
1656825
517999.4
EY
749836.6
EZ
388989.0
Market share
MX
31.26%
MY
Recommendation:
The store site to be chosen for new store is Y.
45.26%
MZ
23.48%