OPERATIONS RESEARCH

Question

Habib’s food liner, Ngugi’s Supermarket and Quick Stop groceries are the only three grocery stores in sand town, a small town in Northern Kenya. A market research involving shoppers over a ten week period indicated that Habib retains 85% of its shoppers while 10% and 5% shift to Ngugi’s and Quick Stop respectively each subsequent week. Ngugi’s lose 20% to Habib and 5% to Quick stop. Of those who shop in Quick stop, 15% and 10% shift to habib and Ngugi respectively. The total grocery store customers in sand town are estimated at 10,000. Each shopper generates revenue of about KSh. 500 per week. What are the projected weekly revenues for each grocery store at equilibrium?

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