Paper Info
Title
A discrete competitive facility location model with variable attractiveness.
Abstract
We consider the discrete version of the competitive facility location problem in which new facilities have to be located by a new market entrant firm to compete against already existing facilities that may belong to one or more competitors. The demand is assumed to be aggregated at certain points in the plane and the new facilities can be located at predetermined candidate sites. We employ Huff's gravity-based rule in modelling the behaviour of the customers where the probability that customers at a demand point patronize a certain facility is proportional to the facility attractiveness and inversely proportional to the distance between the facility site and demand point. The objective of the firm is to determine the locations of the new facilities and their attractiveness levels so as to maximize the profit, which is calculated as the revenue from the customers less the fixed cost of opening the facilities and variable cost of setting their attractiveness levels. We formulate a mixed-integer nonlinear programming model for this problem and propose three methods for its solution: a Lagrangean heuristic, a branch-and-bound method with Lagrangean relaxation, and another branch-and-bound method with nonlinear programming relaxation. Computational results obtained on a set of randomly generated instances show that the last method outperforms the others in terms of accuracy and efficiency and can provide an optimal solution in a reasonable amount of time. Journal of the Operational Research Society (2011) 62, 1726-1741 doi:10.1057/jors.2010.136 Published online 8 September 2010
Year
DOI
Venue
2011
10.1057/jors.2010.136
JORS
Keywords
Field
DocType
nonlinear programming,management science,branch and bound,operational research,information technology,scheduling,facility location problem,project management,inventory,operations research,facility location,profitability,investment,reliability,computer science,information systems,production,fixed cost,communications technology,forecasting,marketing,logistics,location
Heuristic,Mathematical optimization,Branch and bound,Computer science,Nonlinear programming,Operations research,Fixed cost,Facility location problem,Attractiveness,1-center problem,Variable cost,Operations management
Journal
Volume
Issue
ISSN
62
9
0160-5682
Citations 
PageRank 
References 
5
0.48
12
Authors
3
Name
Order
Citations
PageRank
Hande Küçükaydin1482.95
Necati Aras246230.62
I. Kuban Altinel315014.60