ChocoTown has a 4,000 square foot outlet store that serves five major customer regions, denoted...

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Accounting

ChocoTown has a 4,000 square foot outlet store that serves five major customer regions, denoted A, B, C, D and E. The locations of the points representing the customer regions and their weekly demands are shown in the table below. The ChocoTown outlet store is at location (10,20).

Customer

Region

Location

Demand

($/week)

A

(0,10)

4,000

B

(0,20)

2,000

C

(20,0)

4,000

D

(30,20)

3,000

E

(40,10)

2,000

CandyTime is a new competitor of ChocoTown and they are considering opening a 4,000 square foot store at location (30,10). Assume the travel time from location i to j in minutes equals the straight line distance from i to j.

a) Use the spatial interaction model to estimate the demand that would be captured by the new CandyTime store.

Demand captured by CandyTime = ___________

b) Suppose the CandyTime store is located at (30,10), but it is not 4,000 square feet. Use the spatial interaction model to find the size in square feet for the new CandyTime store that would allow it to capture a demand as close as possible to $10,000 per week.

CandyTime store size = _________

c) Use the original size for the CandyTime store of 4,000 square feet. Suppose there is a road that goes straight from coordinates (0,10) to (40,10) and the CandyTime store must be on this road. Thus the y-coordinate for CandyTime is 10. Use the spatial interaction model to find a location for the CandyTime store along this road (with y-coordinate = 10) that would allow it to capture the maximum amount of demand. What are the coordinates of this new location and what is the demand for CandyTime?

Location = (_______, 10)

Demand captured by CandyTime = __________

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