For an outsourcing service industry, the number of so called professional circulating mail was an enigma for me. I thought to understand the physics behind it and wrote some equations. The result was interesting...
The market forces always defined in terms of supply and demand.
So, for an outsourcing industry the forces behind number of such mails
= modulus of (Demand - Supply)
And, the fluctuation of market depends on large difference of supply and demand. Therefore, a negative factor should be present.
Mails = - modulus of (Demand - Supply)
Demand = (Global GDP + Currency fluctuations + Political Conditions + Socio-Economic Conditions + Others) * ( Factor of Cost ) ^n
Supply = (Local GDP + Labour Force + quality*efficiency*client satisfaction)* ( Factor of Cost ) ^m, where m and n are some variables.
Therefore, Mails = - modulus of (Global GDP + Currency fluctuations + Political Conditions + Socio-Economic Conditions + Others)* ( Factor of Cost )^ n - Local GDP + Labour Force + quality*efficiency*client satisfaction)* ( Factor of Cost ) ^m
For an normal economic condition n=m=some constant
Mails = - modulus of (A) * ( Factor of Cost )^n - (B)* ( Factor of Cost ) ^m
= - ( Factor of Cost ) * Some Constants
Factor of Cost is a variable.
Thus mails = - a one degree variable* Constant
This is an S.H.M . If market fluctuates more the equation takes logarithmic or exponential form.
Saturday, February 28, 2009
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