Friday, January 22, 2010

Ramsey Search in action


PQ=MV sends us to this report on hamburgers. This is a problem in adjusting lot sizes. In the inflated state, the distribution chain for hamburgers accumulates round off losses on the basic quant, the hamburger. In the deflated state, the system would sell more hamburgers in each of fewer transactions with a sparser distribution network having less integer rank. In the deflated state they would accumulate quantization gain.

So, hamburger chains are making a Recalculation about when and where to deflate. Some part of the chain will drop out, customers drive a little longer, buy for more people, in more crowded households, and so on as the lot sizes adjust and rate stabilize throughout.

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