Equilibrium Problem: Landscaping Business|Accounts & Maintaining 500

  • Context: MHB 
  • Thread starter Thread starter markn
  • Start date Start date
  • Tags Tags
    Equilibrium
Click For Summary
SUMMARY

The discussion centers on calculating the equilibrium number of accounts for a landscaping business, specifically targeting a goal of 500 accounts. The formula derived indicates that the equilibrium is reached when the product of new accounts added per week (n) and the average duration of account retention in weeks (x) equals 500, expressed as nx = 500. The relationship between n and x is inversely proportional, meaning as one increases, the other decreases. The user seeks clarification on the dynamics of account retention over time, particularly noting that the actual number of accounts will be less than expected due to customer attrition before the one-year mark.

PREREQUISITES
  • Understanding of basic algebra and equations
  • Knowledge of business capacity planning concepts
  • Familiarity with customer retention metrics
  • Basic grasp of differential equations (optional for deeper analysis)
NEXT STEPS
  • Research customer retention strategies in service-based businesses
  • Learn about capacity planning models for small businesses
  • Explore mathematical modeling techniques for business scenarios
  • Study differential equations related to population dynamics for advanced insights
USEFUL FOR

Business owners, particularly in service industries, operations managers, and anyone involved in capacity planning and customer retention strategies.

markn
Messages
2
Reaction score
0
I own a landscaping business with accounts paying regularly. If I add 5 new accounts a week and on average an account stays a customer for one year before quitting, what would my equilibrium number of accounts be? How long to reach equilibrium? how many do I need to add per week to maintain at a certain number, say 500?

This is a real situation for me trying to plan business capacity in the future. A formula for the general case would be much appreciated, n accounts added, stay on for x number of days before quitting, etc.
 
Mathematics news on Phys.org
Suppose you start at day zero, no accounts, and then as you progress, you have an average of $n$ new accounts per week who each stay with you for $x$ weeks. At the end of the first $x$ weeks, you then have $nx$ accounts, and thereafter, you have the same number of accounts dropping as you are adding, so your equilibrium would be $nx$. In order for this to be 500, we require:

$$nx=500$$

There are an infinite number of solutions...as $n$ increases, then $x$ decreases (and vice versa), as there exists an inverse relationship between the two.
 
At the end of the first x weeks I don't think I have nx accounts. After say 50 weeks, given n = 5 it would not be 250 accounts, it must be less than 250 accounts.

If each account stays a year on average some number would have quit before 50 weeks so it must be less than 250.

My math is rusty but it's more complicated, I don't know if it's a diff eq problem, been awhile for me. Thx
 

Similar threads

  • · Replies 1 ·
Replies
1
Views
2K
  • · Replies 7 ·
Replies
7
Views
2K
  • · Replies 9 ·
Replies
9
Views
3K
Replies
2
Views
7K
  • · Replies 7 ·
Replies
7
Views
3K
  • · Replies 18 ·
Replies
18
Views
3K
Replies
4
Views
2K
  • · Replies 7 ·
Replies
7
Views
10K
  • · Replies 24 ·
Replies
24
Views
4K
  • · Replies 1 ·
Replies
1
Views
2K