Location is a significant cost driver as it affects both fixed and variable costs in product or service distribution. In a simplified high-speed rail service case study, determining the location of stops can both minimize the operation cost as well as maximize customers satisfaction. Two options for locations of train stops are being considered.

a) In Option 1, the service has three stops, in City A, City B and City C.

The link travel times are 1.5 hours between each pair of cities in both directions. The time it takes to service the train at each stop is 0.5 hours. As people in City A and City C are interested in better service between these two major cities and suggest not stopping in City B, Option 2 is considered.

With Option 2, the travel time between City A and City C in both directions is now 2.5 hours. The time it takes to service a train in both cities remains the same at 0.5 hours. (i) Calculate the train-cycle for Option 1 and Option 2.

Option 1 0.5 1.5 City C 0.5 1.5 City B 0.5 City A Option 2 0.5 2.5 City C City B 0.5 City A