The previous problem was simplified and repurposed to pick business locations and product mixed to maximize profits. In this version we had to consider that customer behavior was a variable outside the decision of the planner.
Given the customer behavior the model then must decide, locations, sizes and products to increase revenue and reduce costs. Although a smaller problem the fact that the customer can pick a variety of options given the distance between stores this problem can grow faster than the previous one given distance and how loyal the customer is in terms of how far they are willing to move.
We used education data to simulate results and found that we could reduce costs on average by 16.5%, reduce the number of locations by 50%, reduce the total combined areas by 16% and have the same number of customers.