Paper Info
Title
Strategic competitive location: improving existing and establishing new facilities.
Abstract
Competitive facility location models consider two main strategies for increasing the market share captured by a chain subject to a budget constraint. One strategy is the improvement of existing facilities. The second strategy is the construction of new facilities. In this paper we analyse these two strategies as well as the joint strategy which is a combination of the two. All three strategies are formulated as a unified model. The best solution to an individual strategy is a feasible solution to the joint one. Therefore, the joint strategy must yield solutions that are at least as good as the solutions to each of the individual strategies. Based on the results of extensive experiments, we conclude that the increase in market share captured by a chain when the joint strategy is employed can be significantly higher than increases obtained by individual strategies. A branch and bound procedure and a tabu search heuristic are constructed for the solution of the unified model. Both algorithms performed very well on a set of test problems with up to 900 demand points. A total of 62% of the test problems were optimally solved by the branch and bound procedure. Journal of the Operational Research Society (2012) 63, 1720-1730. doi:10.1057/jors.2012.16 Published online 7 March 2012
Year
DOI
Venue
2012
10.1057/jors.2012.16
JORS
Keywords
Field
DocType
facility location,competitive location,cover models
Information system,Branch and bound,Budget constraint,Computer science,Scheduling (computing),Operations research,Facility location problem,Purchasing,Market share,Management science,Operations management,Project management
Journal
Volume
Issue
ISSN
63
12
0160-5682
Citations 
PageRank 
References 
7
0.48
11
Authors
3
Name
Order
Citations
PageRank
Tammy Drezner121821.14
Zvi Drezner21195140.69
Pawel Jan Kalczynski3957.80