Name
Abstract | ||
|---|---|---|
We consider a problem in which a firm or franchise enters a market by locating new facilities where there are existing facilities belonging to a competitor. The firm aims at finding the location and attractiveness of each facility to be opened so as to maximize its profit. The competitor, on the other hand, can react by adjusting the attractiveness of its existing facilities, opening new facilities and/or closing existing ones with the objective of maximizing its own profit. The demand is assumed to be aggregated at certain points in the plane and the facilities of the firm can be located at prespecified candidate sites. We employ Huff's gravity-based rule in modeling the behavior of the customers where the fraction of customers at a demand point that visit a certain facility is proportional to the facility attractiveness and inversely proportional to the distance between the facility site and demand point. We formulate a bilevel mixed-integer nonlinear programming model where the firm entering the market is the leader and the competitor is the follower. In order to find a feasible solution of this model, we develop a hybrid tabu search heuristic which makes use of two exact methods as subroutines: a gradient ascent method and a branch-and-bound algorithm with nonlinear programming relaxation. |
Year | DOI | Venue |
|---|---|---|
2010 | 10.1007/978-3-642-16054-7_3 | Hybrid Metaheuristics |
Keywords | Field | DocType |
nonlinear programming relaxation,new facility,demand point,bilevel mixed-integer nonlinear programming,own profit,facility attractiveness,hybrid tabu search heuristic,bilevel competitive facility location,certain point,existing facility,facility site,certain facility,tabu search,branch and bound algorithm,facility location,profitability,nonlinear programming,bilevel programming | Gradient descent,Mathematical optimization,Subroutine,Bilevel optimization,Nonlinear programming,Facility location problem,Attractiveness,Engineering,1-center problem,Tabu search | Conference |
Volume | ISSN | ISBN |
6373 | 0302-9743 | 3-642-16053-0 |
Citations | PageRank | References |
4 | 0.46 | 9 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Hande Küçükaydin | 1 | 48 | 2.95 |
| Necati Aras | 2 | 462 | 30.62 |
| I. Kuban Altinel | 3 | 150 | 14.60 |