CASPIAN JOURNAL
MANAGEMENT AND HIGH TECHNOLOGIES
Development of a model based on the law of inverse squaresto be used for optimizing the placement of retail networks
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Read | Shikulskaya Olga M., Naberezhnaya Alena V. Development of a model based on the law of inverse squaresto be used for optimizing the placement of retail networks // Caspian journal : management and high technologies. — 2012. — №4. — pp. 54-60. |
Shikulskaya Olga M. - D.Sc. (Engineering), Astrakhan State University, 20a Tatishchev St., Astrakhan, 414056, Russian Federation, shikul@mail.ru
Naberezhnaya Alena V. - post-graduate student, Astrakhan State University, 20a Tatishchev St., Astrakhan, 414056, Russian Federation, naberezhnaya_av@mail.ru
The article says the modern market is facing an accute problem related to the development of existing retail chains and the establishment of new ones. However, a number of important issues – such as the emplacement of new stores to replace inefficient older ones – need to be resolved as a pre-condition to creating new retail networks. The paper indicates that currently there are a large number of different methods available for selecting the placement of retail networks, but none of these is universal nor addresses all of the market-related demands. The most effective solutions, in the critique’s view, could be achieved through the transfer of laws from one area of knowledge to another. One of these universal laws is the inverse square law (Newton’s law), which describes the interaction of gravitational fields, while another (Coulomb’s law) covers the interaction of charged particles and the Biot-Savart-Laplace magnetic analog. The study has considered the possibility of using either Newton’s or Coulomb’s law to resolve the challenge at hand. The latter, which it suggests is most suitable, would take into account the direction of the forces of interaction, depending on the activity caused by interacting participants. In conclusion, the research paper has analyzed all of the factors affecting the incurrence of profits (or losses) from the perspective of a retail network.
Key words: retail trade network,optimization of location,method,model,adaptation of method,Coulomb’s law,optimization criteria,placement object,competitors,clients,medium penetrability,estimator,valuation criteria