1 Site area (Sq Ft)X 15000Y 20000Z 10000

2 X Y1 16 12

Aij = Sj / Tij 2 14 103 14 104 16 125 13 96 8 57 7 48 6 39 4 2

10 4 411 2 212 2 5

3 Probability ChartPX1 0.020742

Pij = Aij / Aij PX2 0.008136PX3 0.008136PX4 0.020742PX5 0.003982PX6 0.001433PX7 8.91E-005PX8 0.020522PX9 0.021516PX10 0.427321PX11 0.428532PX12 0.986475

6 MARKET SHARE CALCULATIONEX 400104.451 EY 516399.10009 EZ 740321.4%EX 24% %EY 31% %EZ 45%

Z Attractiveness to sites Total A respective block7 AX1 0.014305 AY1 0.080376 AZ1 0.59499 Ai15 AX2 0.02789 AY2 0.2 AZ2 3.2 Ai25 AX3 0.02789 AY3 0.2 AZ3 3.2 Ai37 AX4 0.014305 AY4 0.080376 AZ4 0.59499 Ai44 AX5 0.040399 AY5 0.338702 AZ5 9.765625 Ai52 AX6 0.457764 AY6 6.4 AZ6 312.5 Ai61 AX7 0.892485 AY7 19.53125 AZ7 10000 Ai74 AX8 1.929012 AY8 82.30453 AZ8 9.765625 Ai83 AX9 14.64844 AY9 625 AZ9 41.15226 Ai9

10 AX10 14.64844 AY10 19.53125 AZ10 0.1 Ai1010 AX11 468.75 AY11 625 AZ11 0.1 Ai1113 AX12 468.75 AY12 6.4 AZ12 0.026933 Ai12

Probability ChartPY1 0.116542 PZ1 0.862716 4 Block No No of HousPY2 0.058345 PZ2 0.933519 1 730PY3 0.058345 PZ3 0.933519 2 1130PY4 0.116542 PZ4 0.862716 3 1035PY5 0.033387 PZ5 0.962631 4 635PY6 0.02004 PZ6 0.978526 5 160PY7 0.001949 PZ7 0.997962 6 105PY8 0.875588 PZ8 0.103891 7 125PY9 0.918037 PZ9 0.060447 8 470PY10 0.569762 PZ10 0.002917 9 305PY11 0.571376 PZ11 9.14E-005 10 1755PY12 0.013469 PZ12 5.67E-005 11 900

12 290

5 Estimated Total Expenditure for a productEX1 2725.492 EY1 15313.6 EZ1 113360.9EX2 1149.245 EY2 8241.221 EZ2 131859.5EX3 2357.885 EY3 16908.36 EZ3 270533.8EX4 4609.898 EY4 25901.43 EZ4 191738.7EX5 47.78762 EY5 400.6437 EZ5 11551.57EX6 7.525288 EY6 105.2112 EZ6 5137.264

EX7 0.668 EY7 14.61858 EZ7 7484.713EX8 1109.192 EY8 47325.52 EZ8 5615.284EX9 590.6275 EY9 25200.11 EZ9 1659.266EX10 198736.4 EY10 264981.9 EZ10 1356.707EX11 82920.99 EY11 110561.3 EZ11 17.68981EX12 105848.7 EY12 1445.188 EZ12 6.081737

TOTAL EX 400104 EY 516399 EZ 740321

Total A respective block0.68967081183.42789016483.42789016480.6896708118

10.1447261173319.3577636719

10020.42373527493.9991640947

680.800700874534.2796875

1093.85475.1769329074

Annual Exp. In $ Customer Spending180 131400125 141250280 289800350 222250

75 1200050 525060 7500

115 5405090 27450

265 465075215 193500370 107300

1656825 Total

Ejk = PijCiBik

1 Site area (Sq Ft)X 15000Y 20000Z 10000

2 X Y1 16 12

Aij = Sj / Tij 2 14 103 14 104 16 125 13 96 8 57 7 48 6 39 4 2

10 4 411 2 212 2 5

3 Probability ChartPX1 0.281888

Pij = Aij / Aij PX2 0.27077PX3 0.27077PX4 0.281888PX5 0.262859PX6 0.248764PX7 0.220864PX8 0.270116PX9 0.273566PX10 0.36298PX11 0.380015PX12 0.475113

6 MARKET SHARE CALCULATIONEX 537956.817 EY 755601.55707 EZ 363266.6%EX 32% %EY 46% %EZ 22%

Z Attractiveness to sites Total A respective block7 AX1 3750 AY1 5773.503 AZ1 3779.645 Ai15 AX2 4008.919 AY2 6324.555 AZ2 4472.136 Ai25 AX3 4008.919 AY3 6324.555 AZ3 4472.136 Ai37 AX4 3750 AY4 5773.503 AZ4 3779.645 Ai44 AX5 4160.251 AY5 6666.667 AZ5 5000 Ai52 AX6 5303.301 AY6 8944.272 AZ6 7071.068 Ai61 AX7 5669.467 AY7 10000 AZ7 10000 Ai74 AX8 6123.724 AY8 11547.01 AZ8 5000 Ai83 AX9 7500 AY9 14142.14 AZ9 5773.503 Ai9

10 AX10 7500 AY10 10000 AZ10 3162.278 Ai1010 AX11 10606.6 AY11 14142.14 AZ11 3162.278 Ai1113 AX12 10606.6 AY12 8944.272 AZ12 2773.501 Ai12

Probability ChartPY1 0.433995 PZ1 0.284117 4 Block No No of HousPY2 0.427173 PZ2 0.302057 1 730PY3 0.427173 PZ3 0.302057 2 1130PY4 0.433995 PZ4 0.284117 3 1035PY5 0.421223 PZ5 0.315917 4 635PY6 0.419552 PZ6 0.331685 5 160PY7 0.389568 PZ7 0.389568 6 105PY8 0.509335 PZ8 0.220549 7 125PY9 0.515842 PZ9 0.210592 8 470PY10 0.483974 PZ10 0.153046 9 305PY11 0.506687 PZ11 0.113299 10 1755PY12 0.400651 PZ12 0.124236 11 900

12 290

5 Estimated Total Expenditure for a productEX1 37040.11 EY1 57026.97 EZ1 37332.92EX2 38246.3 EY2 60338.17 EZ2 42665.53EX3 78469.22 EY3 123794.7 EZ3 87536.08EX4 62649.65 EY4 96455.44 EZ4 63144.91EX5 3154.311 EY5 5054.68 EZ5 3791.01EX6 1306.009 EY6 2202.646 EZ6 1741.345

EX7 1656.482 EY7 2921.759 EZ7 2921.759EX8 14599.76 EY8 27529.58 EZ8 11920.66EX9 7509.4 EY9 14159.86 EZ9 5780.739EX10 168813.1 EY10 225084.1 EZ10 71177.84EX11 73532.88 EY11 98043.85 EZ11 21923.27EX12 50979.63 EY12 42989.8 EZ12 13330.57

TOTAL EX 537957 EY 755602 EZ 363267

Total A respective block13303.14742198914805.60990402314805.60990402313303.14742198915826.91813835621318.64058076425669.46709513822670.72974075127415.63831562720662.27766016827911.01500169822324.374608924

Annual Exp. In $ Customer Spending180 131400125 141250280 289800350 222250

75 1200050 525060 7500

115 5405090 27450

265 465075215 193500370 107300

1656825 Total

Ejk = PijCiBik

1 Site area (Sq Ft)X 15000Y 20000Z 10000

2 X Y1 16 12

Aij = Sj / Tij 2 14 103 14 104 16 125 13 96 8 57 7 48 6 39 4 2

10 4 411 2 212 2 5

3 Probability ChartPX1 0.232472

Pij = Aij / Aij PX2 0.211268PX3 0.211268PX4 0.232472PX5 0.196364PX6 0.172414PX7 0.125PX8 0.214286PX9 0.219512PX10 0.384615PX11 0.405405PX12 0.611285

6 MARKET SHARE CALCULATIONEX 517999.383 EY 749836.61892 EZ 388989%EX 31% %EY 45% %EZ 23%

Z Attractiveness to sites7 AX1 937.5 AY1 1666.667 AZ1 1428.571 Ai15 AX2 1071.429 AY2 2000 AZ2 2000 Ai25 AX3 1071.429 AY3 2000 AZ3 2000 Ai37 AX4 937.5 AY4 1666.667 AZ4 1428.571 Ai44 AX5 1153.846 AY5 2222.222 AZ5 2500 Ai52 AX6 1875 AY6 4000 AZ6 5000 Ai61 AX7 2142.857 AY7 5000 AZ7 10000 Ai74 AX8 2500 AY8 6666.667 AZ8 2500 Ai83 AX9 3750 AY9 10000 AZ9 3333.333 Ai9

10 AX10 3750 AY10 5000 AZ10 1000 Ai1010 AX11 7500 AY11 10000 AZ11 1000 Ai1113 AX12 7500 AY12 4000 AZ12 769.2308 Ai12

Probability ChartPY1 0.413284 PZ1 0.354244 4 Block No No of HousPY2 0.394366 PZ2 0.394366 1 730PY3 0.394366 PZ3 0.394366 2 1130PY4 0.413284 PZ4 0.354244 3 1035PY5 0.378182 PZ5 0.425455 4 635PY6 0.367816 PZ6 0.45977 5 160PY7 0.291667 PZ7 0.583333 6 105PY8 0.571429 PZ8 0.214286 7 125PY9 0.585366 PZ9 0.195122 8 470PY10 0.512821 PZ10 0.102564 9 305PY11 0.540541 PZ11 0.054054 10 1755PY12 0.326019 PZ12 0.062696 11 900

12 290

5 Estimated Total Expenditure for a productEX1 30546.86 EY1 54305.54 EZ1 46547.6EX2 29841.55 EY2 55704.23 EZ2 55704.23EX3 61225.35 EY3 114287.3 EZ3 114287.3EX4 51666.97 EY4 91852.4 EZ4 78730.63EX5 2356.364 EY5 4538.182 EZ5 5105.455EX6 905.1724 EY6 1931.034 EZ6 2413.793

EX7 937.5 EY7 2187.5 EZ7 4375EX8 11582.14 EY8 30885.71 EZ8 11582.14EX9 6025.61 EY9 16068.29 EZ9 5356.098EX10 178875 EY10 238500 EZ10 47700EX11 78445.95 EY11 104594.6 EZ11 10459.46EX12 65590.91 EY12 34981.82 EZ12 6727.273

TOTAL EX 517999 EY 749837 EZ 388989

4032.73809523815071.42857142865071.42857142864032.73809523815876.0683760684

1087517142.85714285711666.66666666717083.333333333

975018500

12269.230769231

Annual Exp. In $ Customer Spending180 131400125 141250280 289800350 222250

75 1200050 525060 7500

115 5405090 27450

265 465075215 193500370 107300

1656825 Total

Ejk = PijCiBik

ATHOL FURNITURE INC CASE SOLUTION1

2

3 = 0.5 , Sensitivity doesn't changed much its still site Y is preferred location.= 5 Z is more preferred location with 45% of market share with salesarea 10000 sqft and 3.9% of net operating Profit as percent of sales

4 The short coming we realize during solving the case are:In order to calibrate the model, scenario data is required, and this data can be expensive to collect. However, this looks like more a users problem rather than a vendors problem.the statistical analysis required to calibrate the model may be perceived as being too difficult

Site Y is most preferrable location for AFI as it shows highest market share among all and Sales area is 20000 sq ft

According to table 10.18 for 20000 sqft sales area , net operating profit is 2.9 % of sales and Expected market Share is 45% for site Y

ATHOL FURNITURE INC CASE SOLUTION

= 0.5 , Sensitivity doesn't changed much its still site Y is preferred location.= 5 Z is more preferred location with 45% of market share with salesarea 10000 sqft and 3.9% of net operating Profit as percent of sales

The short coming we realize during solving the case are:In order to calibrate the model, scenario data is required, and this data can be expensive to collect. However, this looks like more a users problem rather than a vendors problem.the statistical analysis required to calibrate the model may be perceived as being too difficult

is most preferrable location for AFI as it shows highest market share among all and Sales area is 20000 sq ft

According to table 10.18 for 20000 sqft sales area , net operating profit is 2.9 % of sales and Expected market Share is 45% for site Y

In order to calibrate the model, scenario data is required, and this data can be expensive to collect. However, this looks like more a users problem rather than a vendors problem.

calculation for site = 5calculation for site = 0.5calculation for site =1Answers