Customer Exposure to Sellers, Probabilistic Optimization and Profit Research

Abstract

This paper deals with a probabilistic problem in which there is a specific probability for a customer to meet a seller in a specified area. It is assumed that the area in which a seller acts follows an exponential distribution and affects the probability of meeting with a customer. Furthermore, the range in which a customer can meet a seller is another parameter which affects the probability of a successful meeting. The solution to the problem is based on a bomb fragmentation model using Lagrange equations. More specifically, using Lagrange equations, the abovementioned dimensions will be calculated in order to optimize the probability of a customer meeting a seller.

Keywords

• probabilistic analysis
• optimization
• Lagrange equations
• operations research
• bomb fragmentation