Maximize Market Share with capacity

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09-24-2015 04:10 PM
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New Contributor II

I am using ArcGIS 10.3 and I am trying to do a Location Allocation with a capacity limit for my facilities. I have tried Maximize Cap. Coverage, but I need to have my demand points split to determine the proportion of demand that each facility will get. That seems to be only possible in Max Market share, but capacity is not available with Max Market share.

Thanks

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MVP Esteemed Contributor

as in the examples listed here?

Location-allocation analysis—Help | ArcGIS for Desktop

they do  mention capacitated coverage but I will defer the interpretation of that term to others

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New Contributor II

Hi Dan, thanks for the response. I have been using the site you mentioned for reference but it's on that site that I came across;

"The Capacity property is specific to the Maximize Capacitated Coverage problem type; the other problem types ignore Capacity."

And was wondering if there is any way to work around it and actually use capacity with the Maximize Market share solver

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MVP Esteemed Contributor

Is suspect not, unless it is/or has been added to Pro.  It might be worthwhile adding it the ArcGIS Ideas site or even seeing if it is listed there.  If demand for a certain analysis technique, it will be implemented at some point.  If the demand is low...then you will have to provide the criteria(on) to perform the analysis and code it yourself with the help of existing Network tools

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Esri Regular Contributor

If you just need that statistics on how the demand is allocated then you can open the attribute table for the Facilities and for each chosen facility it will tell how many demand points and amount of demand was allocated.

If you want ONE demand point with say 10 demand weight allocated to more than one facility while using the Maximize Capacitated Coverage then you need to duplicate the demand point. So in this case you could put in 5 points with demand 2 or 10 points with demand 1 and then run the solver.

Jay Sandhu

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New Contributor II

Hi Jay, thanks for the response and suggestion.

My problem is that the weight on my demand points is not a consistent number. So each different demand point weight fraction gets allocated based on the distance from the facility and the weight of the facility(also not a consistent number) and that fraction changes for each of my 40000 demand points. The maximum market share solver does a great job doing this allocation, If I can just make it stop allocating weight when a facility reaches it's capacity.

What I have been doing, is adjusting the facility's weight so it decrease when it's capacity decrease. But the different characteristics of my facilities and demand points make this very hard to do, something a capacity limit would solve immediately.

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Esri Regular Contributor

Perhaps you can describe what you are trying to achieve. Maximize market share has a different objective then the maximize capacitated coverage problem type. So if capacity is important you need to split the demand into smaller demand points and allocate that way.

Jay

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New Contributor II

I am trying to assign customer location (demand points) to retail stores (facilities). Each customer point has a total amount of spending potential, my goal is to divide the spending potential for each customer location between retail location based on the weight of the retail store.

Maximum market share does this very well, but as I mentioned earlier, I want the facilities to stop drawing customers when it reaches it's capacity.

The customer locations are grouped together into census groups and I do not have information to split them into smaller demand points.

- Carel

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Esri Regular Contributor

Thanks for providing the background on what you are doing. In general retail stores have no capacity and thus the maximize market share does not try to limit that. Also, it is not working on "demand" to which one can apply the notion of capacity. What is is working on is the probability of a spatial interaction between the store and customer location based on distance away and the distance decay (power or exponential) that has been calibrated from some known behavioral analysis for the area and the product mix.

So the only thing that will limit the interactions is the impedance cutoff. e.g., Customers do not come from more than 10 Km away. Sorry there is no notion of capacity in this case.

As far as demand point being census group  points, all I was suggesting before is you can take the same location and add it again but halve the number of people that are there. So the total amount of people at the location is the same except they are now split into two separate points that can be allocated separately if you use the max capacitated coverage solver.

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New Contributor II

Hi Jay, thanks again for the response

An example of the retail capacity issue that I have is the following. There is a very popular corner store that has a high weight based on it's popularity right next to a much bigger store but not as popular, so lower weight. I'm trying to get Network Analyst to model the "supply" the small store gets in the form of customer dollars, but stop the supply as soon as it reaches it's "capacity" in this case the currents store sales. At this point the bigger store next door starts gets the rest of the market dollars.

I like your idea of splitting up the demand points based on population, the size of the demand data set will increase quite a bit. But I will give that a go.

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