Service Management Third Edition

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HUFF MODEL ANALYSIS OF ATHOL FURNITURE LOCATION
PROFIT MARGINS
---------------
SIZE MARGIN
10000 0.039
15000 0.036
20000 0.029
PROFIT CALCULATIONS ; LAMBDA = 1
MARGIN  
BEFORE ANNUAL MARKET
PROPOSED | SIZE TAXES PROFIT SHARE
SITE | ------- | ------- ------- ------- -------
A | 10000 | 0.039 19443 0.3009
B | 15000 | 0.036 41699 0.6991
     X | 10000 | 0.039 15163 0.2347
     X | 15000 | 0.036 18406 0.3086
     Y | 10000 | 0.039 16105 0.2492
     Y | 15000 | 0.036 19718 0.3306
     Y | 20000 | 0.029 19003 0.3955
     Z | 10000 | 0.039 14879 0.2303
 
Head to head comparisons
A | 10000 | 0.039 15680 24.27%
B | 15000 | 0.036 31175 52.27%
     X | 10000 | 0.039 15163 23.47%
A | 10000 | 0.039 14372 22.24%
B | 15000 | 0.036 27973 46.90%
     X | 15000 | 0.036 18406 30.86%
A | 10000 | 0.039 15028 23.26%
B | 15000 | 0.036 30907 51.82%
     Y | 10000 | 0.039 16105 24.92%
A | 10000 | 0.039 13518 20.92%
B | 15000 | 0.036 27450 46.02%
     Y | 15000 | 0.036 19718 33.06%
A | 10000 | 0.039 12290 19.02%
B | 15000 | 0.036 24712 41.43%
     Y | 20000 | 0.029 19003 39.55%
A | 10000 | 0.039 13688 21.18%
B | 15000 | 0.036 33277 55.79%
     Z | 10000 | 0.039 14879 23.03%
Data Matrix
-----------
PRESENT | STORE | CUSTOMER ZONE
SITE | SIZE | 1 2 3 4 5 6 7 8 9 10 11 12
======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ========
     A | 10000 | 7 5 5 9 1 3 4 5 7 10 14 17
     B | 15000 | 10 8 8 10 7 3 3 2 1 2 2 5
PROPOSED | |
SITE | ------- | ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
     X | 10000 | 16 14 14 16 13 8 7 6 4 4 2 2
     X | 15000 | 16 14 14 16 13 8 7 6 4 4 2 2
     Y | 10000 | 12 10 10 12 9 5 4 3 2 4 2 5
     Y | 15000 | 12 10 10 12 9 5 4 3 2 4 2 5
     Y | 20000 | 12 10 10 12 9 5 4 3 2 4 2 5
     Z | 10000 | 7 5 5 7 4 2 1 4 3 10 10 13
========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========
CUSTOMERS |         
IN ZONE      => | 730 1130 1035 635 160 105 125 470 305 1755 900 290
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
EXPENDITURE |        
PER CUSTOMER OMER MER  => | 180 125 280 350 75 50 60 115 90 265 215 370 TOTAL
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL EXPEND. |           
PER ZONE | 131400 141250 289800 222250 12000 5250 7500 54050 27450 465075 193500 107300 2E+06
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
ATTRACTION MATRIX
-----------
PRESENT | STORE | CUSTOMER ZONE
SITE | SIZE | 1 2 3 4 5 6 7 8 9 10 11 12
======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ========
     A | 10000 | 1428.6 2000 2000 1111.1 10000 3333.3 2500 2000 1428.6 1000 714.29 588.24
     B | 15000 | 1500 1875 1875 1500 2142.9 5000 5000 7500 15000 7500 7500 3000
PROPOSED | |
SITE | ------- | ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
     X | 10000 | 625 714.29 714.29 625 769.23 1250 1428.6 1666.7 2500 2500 5000 5000
     X | 15000 | 937.5 1071.4 1071.4 937.5 1153.8 1875 2142.9 2500 3750 3750 7500 7500
     Y | 10000 | 833.33 1000 1000 833.33 1111.1 2000 2500 3333.3 5000 2500 5000 2000
     Y | 15000 | 1250 1500 1500 1250 1666.7 3000 3750 5000 7500 3750 7500 3000
     Y | 20000 | 1666.7 2000 2000 1666.7 2222.2 4000 5000 6666.7 10000 5000 10000 4000
     Z | 10000 | 1428.6 2000 2000 1428.6 2500 5000 10000 2500 3333.3 1000 1000 769.23
========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========
SUM WITH A 10000 2928.6 3875 3875 2611.1 12143 8333.3 7500 9500 16429 8500 8214.3 3588.2
SUM WITH B 15000 2928.6 3875 3875 2611.1 12143 8333.3 7500 9500 16429 8500 8214.3 3588.2
SUM WITH 11   X 10000 3553.6 4589.3 4589.3 3236.1 12912 9583.3 8928.6 11167 18929 11000 13214 8588.2
SUM WITH 12   X 15000 3866.1 4946.4 4946.4 3548.6 13297 10208 9642.9 12000 20179 12250 15714 11088
SUM WITH 13   Y 10000 3761.9 4875 4875 3444.4 13254 10333 10000 12833 21429 11000 13214 5588.2
SUM WITH 14   Y 15000 4178.6 5375 5375 3861.1 13810 11333 11250 14500 23929 12250 15714 6588.2
SUM WITH 15   Y 20000 4595.2 5875 5875 4277.8 14365 12333 12500 16167 26429 13500 18214 7588.2
SUM WITH Z20   Z 10000 4357.1 5875 5875 4039.7 14643 13333 17500 12000 19762 9500 9214.3 4357.5
PROBABILITY MARTIX -- PROBABILITY OF CUSTOMER FROM ZONE i TRAVELING TO STORE j
-----------
PROPOSED | |
SITE | ------- | ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
 A | 10000 | 0.4878 0.5161 0.5161 0.4255 0.8235 0.4 0.3333 0.2105 0.087 0.1176 0.087 0.1639
 B | 15000 | 0.5122 0.4839 0.4839 0.5745 0.1765 0.6 0.6667 0.7895 0.913 0.8824 0.913 0.8361
     X | 10000 | 0.1759 0.1556 0.1556 0.1931 0.0596 0.1304 0.16 0.1493 0.1321 0.2273 0.3784 0.5822
 A | 10000 | 0.402 0.4358 0.4358 0.3433 0.7745 0.3478 0.28 0.1791 0.0755 0.0909 0.0541 0.0685
 B | 15000 | 0.4221 0.4086 0.4086 0.4635 0.166 0.5217 0.56 0.6716 0.7925 0.6818 0.5676 0.3493
     X | 15000 | 0.2425 0.2166 0.2166 0.2642 0.0868 0.1837 0.2222 0.2083 0.1858 0.3061 0.4773 0.6764
 A | 10000 | 0.3695 0.4043 0.4043 0.3131 0.7521 0.3265 0.2593 0.1667 0.0708 0.0816 0.0455 0.0531
 B | 15000 | 0.388 0.3791 0.3791 0.4227 0.1612 0.4898 0.5185 0.625 0.7434 0.6122 0.4773 0.2706
     Y | 10000 | 0.2215 0.2051 0.2051 0.2419 0.0838 0.1935 0.25 0.2597 0.2333 0.2273 0.3784 0.3579
 A | 10000 | 0.3797 0.4103 0.4103 0.3226 0.7545 0.3226 0.25 0.1558 0.0667 0.0909 0.0541 0.1053
 B | 15000 | 0.3987 0.3846 0.3846 0.4355 0.1617 0.4839 0.5 0.5844 0.7 0.6818 0.5676 0.5368
     Y | 15000 | 0.2991 0.2791 0.2791 0.3237 0.1207 0.2647 0.3333 0.3448 0.3134 0.3061 0.4773 0.4554
 A | 10000 | 0.3419 0.3721 0.3721 0.2878 0.7241 0.2941 0.2222 0.1379 0.0597 0.0816 0.0455 0.0893
 B | 15000 | 0.359 0.3488 0.3488 0.3885 0.1552 0.4412 0.4444 0.5172 0.6269 0.6122 0.4773 0.4554
     Y | 20000 | 0.3627 0.3404 0.3404 0.3896 0.1547 0.3243 0.4 0.4124 0.3784 0.3704 0.549 0.5271
 A | 10000 | 0.3109 0.3404 0.3404 0.2597 0.6961 0.2703 0.2 0.1237 0.0541 0.0741 0.0392 0.0775
 B | 15000 | 0.3264 0.3191 0.3191 0.3506 0.1492 0.4054 0.4 0.4639 0.5676 0.5556 0.4118 0.3953
     Z | 10000 | 0.3279 0.3404 0.3404 0.3536 0.1707 0.375 0.5714 0.2083 0.1687 0.1053 0.1085 0.1765
 A | 10000 | 0.3279 0.3404 0.3404 0.275 0.6829 0.25 0.1429 0.1667 0.0723 0.1053 0.0775 0.135
 B | 15000 | 0.3443 0.3191 0.3191 0.3713 0.1463 0.375 0.2857 0.625 0.759 0.7895 0.814 0.6885
========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========
EXPECTED CUSTOMER EXPENDITURES AT STORE j
PROPOSED | | TOTAL
SITE | ------- | ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
A | 10000 | 64098 72903 149574 94574 9882.4 2100 2500 11379 2387 54715 16826 17590 498529
B | 15000 | 67302 68347 140226 127676 2117.6 3150 5000 42671 25063 410360 176674 89710 1E+06
     X | 10000 | 23111 21984 45105 42924 714.89 684.78 1200 8067.2 3625.5 105699 73216 62469 388800
A | 10000 | 52824 61556 126294 76309 9293.6 1826.1 2100 9680.6 2071.7 42280 10459 7349.3 402044
B | 15000 | 55465 57709 118401 103017 1991.5 2739.1 4200 36302 21753 317097 109824 37482 865981
     X | 15000 | 31864 30596 62773 58716 1041.3 964.29 1666.7 11260 5101.3 142370 92352 72577 511281
A | 10000 | 48554 57112 117175 69589 9024.8 1714.3 1944.4 9008.3 1943.4 37965 8795.5 5692.3 368519
B | 15000 | 50982 53542 109852 93945 1933.9 2571.4 3888.9 33781 20405 284740 92352 29031 777025
     Y | 10000 | 29108 28974 59446 53770 1006 1016.1 1875 14039 6405 105699 73216 38402 412957
A | 10000 | 49899 57949 118892 71694 9053.9 1693.5 1875 8423.4 1830 42280 10459 11295 385343
B | 15000 | 52394 54327 111462 96786 1940.1 2540.3 3750 31588 19215 317097 109824 57603 858526
     Y | 15000 | 39308 39419 80874 71951 1448.3 1389.7 2500 18638 8603.7 142370 92352 48860 547714
A | 10000 | 44923 52558 107833 63957 8689.7 1544.1 1666.7 7455.2 1638.8 37965 8795.5 9580.4 346606
B | 15000 | 47169 49273 101093 86342 1862.1 2316.2 3333.3 27957 17207 284740 92352 48860 762505
     Y | 20000 | 47658 48085 98655 86591 1856.4 1702.7 3000 22289 10386 172250 106235 56561 655270
A | 10000 | 40850 48085 98655 57727 8353.6 1418.9 1500 6686.6 1483.8 34450 7588.2 8317.8 315116
B | 15000 | 42892 45080 92489 77932 1790.1 2128.4 3000 25075 15580 258375 79676 42421 686439
     Z | 10000 | 43082 48085 98655 78595 2048.8 1968.8 4285.7 11260 4630.1 48955 21000 18942 381509
A | 10000 | 43082 48085 98655 61130 8195.1 1312.5 1071.4 9008.3 1984.3 48955 15000 14485 350964
B | 15000 | 45236 45080 92489 82525 1756.1 1968.8 2142.9 33781 20836 367164 157500 73873 924352
========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========


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