Why Aggregate? The reasons for data aggregation: The cost of obtaining and processing data The form in which data is available The size of the resulting location model The accuracy of forecast demand 1.Our ability to forecast customer demand is poor. 2.The variability in forecast demand can be reduced through aggregating data. 3.It is the basis of risk pooling concept
Why Aggregate? The reasons for data aggregation: The cost of obtaining and processing data The form in which data is available The size of the resulting location model The accuracy of forecast demand 1. Our ability to forecast customer demand is poor. 2. The variability in forecast demand can be reduced through aggregating data. 3. It is the basis of risk pooling concept
Aggregating Customers Customers and Geo-coding(地理编码) Sales data is typically collected on a by- customer basis Network planning is facilitated if sales data is in a geographic database rather than accounting database 1. Distances 2.Transportation costs New technology exists for Geo-coding the data based on Geographic Information System(GlS)
Aggregating Customers Customers and Geo-coding（地理编码） Sales data is typically collected on a bycustomer basis Network planning is facilitated if sales data is in a geographic database rather than accounting database 1. Distances 2. Transportation costs New technology exists for Geo-coding the data based on Geographic Information System (GIS)
Aggregating Customers Customers located in close proximity are aggregated using a grid network or clustering techniques. All customers within a single cell or a single cluster are replaced by a single customer located at the centre of the cell or cluster. We refer to a cell or a cluster as a customer zone(顾客区)
Aggregating Customers Customers located in close proximity are aggregated using a grid network or clustering techniques. All customers within a single cell or a single cluster are replaced by a single customer located at the centre of the cell or cluster. We refer to a cell or a cluster as a customer zone（顾客区）