1 Agent-Based Modelling Incorporating Qualitative and Quantitative ...
1 Agent-Based Modelling Incorporating Qualitative and Quantitative ...
1 Agent-Based Modelling Incorporating Qualitative and Quantitative ...
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expertise to help design new production facilities. The company has thous<strong>and</strong>s of direct customers<br />
who are supplied directly from a central European store. There are also a large number of<br />
independent distributing companies (distributors) who hold inventory <strong>and</strong> cover every region of the<br />
UK. Distributors hold stock locally <strong>and</strong> offer technical assistance to speedily, <strong>and</strong> cost-effectively,<br />
serve the smaller customers. Unlike the manufacturer, they provide for credit card purchases <strong>and</strong><br />
are willing to take the financial risk of dealing with smaller customers. Another important benefit<br />
distributors give to the manufacturer is in having local sales forces, thus acting as a ‘multiplier’ of<br />
their products, reaching customers that they otherwise would not. The distribution arrangement is<br />
shown in Figure 1.<br />
Figure 1: Market structure. Heavy lines show the flow of orders <strong>and</strong> normal lines show the market relationships<br />
(representing all other kinds of information flow).<br />
Manufacturer's<br />
Central Supplies<br />
Orders<br />
Manufacturer<br />
Order Management<br />
Orders<br />
Internal Sales<br />
Distribution<br />
Team<br />
Regional<br />
Sales 1<br />
Regional<br />
Sales 50<br />
Orders<br />
Distributor<br />
Sales<br />
Distributor<br />
Sales<br />
Customer<br />
Customer<br />
Customer<br />
Customer<br />
VIA<br />
DISTRIBUTION<br />
DIRECT<br />
CUSTOMERS<br />
7