1. List five business functions that the SPD model is of value in managing.
2. What are the caveats that are required for the SPD model to be valid? How might this interpret literally?
1. A scheduling, pricing, and dispatch model "SPD" is essentially a nodal pricing scheme. It is useful whenever the demand for the service exists at a large number of widely dispersed sites (e.g. every household needs a source of groceries, but impossible to provide a grocery store at each household). For reasons of cost (economies of scale) service must be provided from a few, centralized locations ("sites").
These types of ...
five business functions that the SPD model is of value in managing and caveats required for model to be valid