1. Utilizing a spreadsheet version of the Huff location model (with = 1.0), recommend a store...
Question:
1. Utilizing a spreadsheet version of the Huff location model (with λ = 1.0), recommend a store size and location for AFI that will maximize expected net operating profit before taxes. Assuming that AFI does not wish to consider a store smaller than 10,000 square feet, assess the store sizes (based on increments of 5,000 square feet) up to the maximum allowable sales area for each potential site.
2. What is the expected annual net operating profit before taxes and market share for the outlet you have recommended? Defend your recommendation.
3. Try two other values of λ (e.g., 0.5 and 5.0) to measure the sensitivity of customer travel propensity on your recommended location.
4. Briefly state any shortcomings you may perceive in this model.
Step by Step Answer:
Athol Furniture Inc is preparing to open a new store in Bluff Lake a small community that already has two stores that sell furniture and large appliances Athol has identified three possible sites for ...View the full answer
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi
