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日期:2019-04-24 11:03

2. Would you recommend using a specific shelf location and in-store coupon dispensers to

sell the energy bars? Justify. [5 marks]

3. Suggest additional data you would advise Health Food to collect in order to investigate

other factors affecting the sales of the energy bars. [5 marks]

Part 2: Selecting carriers for a telecommunication company to obtain volume discounts

During 2001, many European markets for mobile phones reached saturation. Because of this,

mobile phone operators started to shift their focus from growth and market share to cutting

costs. One way to do this is to reduce spending on international calls. These calls are routed

through network operating companies called carriers. The carriers charge per call-minute for

each destination, and they often use a discount on total business volume to price their services.

A mobile phone operator must decide how to allocate destinations to carriers.

V-Mobile, a mobile phone operator in Denmark, must make such a decision for a T-month

planning horizon when it has C carriers to choose from, D destinations for its customers’ calls,

and there are I price intervals for a typical carrier. (These intervals define a carrier’s discount

structure.) The information in the worksheet “Telecommunication” of the data file provided

one version of V-Mobile’s planning problem for a 2-month planning horizon, 3 carriers for

selection, 5 destinations of customers’ calls and 3 price intervals:

The price per call-minute for destination d from carrier c in price interval i in month t

The (forecasted) demand of call-minutes for destination d in month t

The lower and upper limits on volume (number of call-minutes) for carrier c in price

interval i

The lower and upper limits on capacity (number of call-minutes) for carrier c in month t

The penalty per call-minute (to discourage poor quality options) for carrier to destination d

in month t.

V-Mobile wants to find a least-cost way of routing its call-minutes through the various carriers.

Naturally, it hopes to take advantage of price discounts offered by the carriers. Develop an

optimization model that helps V-Mobile allocate its international calls in a cost-efficient

manner. One of the possible models is to consider the following decision variables:

The volume (call-minutes) routed through carrier c to destination d in price interval i in

month t

3

A binary variable for each combination of carrier c and price interval i with value equals 1

if the volume of call-minutes assigned to this carrier (over all destinations and months) falls

in price interval i, and equals 0 otherwise.

1. Formulate the problem by a mathematical model in the report. Explain. [15 marks]

2. Develop the optimization model of Part 2.1 on spreadsheet presented with the final results.

[15 marks]

3. Write a brief memo to summarize the results of Part 2.2. Provide other recommendations

to facilitate implementation of your results. [5 marks]

[Readability and presentation of report: 5 marks]

Appendix for Part 1: Memo from ISD to Health Food

To the marketing manager at Health Food:

As you know, in reviewing your test marketing of the energy bars, my colleagues and I at ISD

suggested how your sales could be enhanced. From our experience in marketing similar

products, we told you that the shelf locations of a product and the presence of in-store coupon

dispensers can enhance supermarket sales.

We are happy to report the positive correlation of these factors and sales of the energy bars.

You can see the effects, if you look through the data. I think the most striking thing is the only

store (Store 1) with over 4000 unit sales and only 200 in promotional dollars was a store with

coupon dispensers!

We can talk at a later time about extending our marketing agreement. In the meantime,

congratulations on a successful test marketing venture.

Sincerely,

In-store Design

END


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