 Effects of multipurpose shopping trips on retail store location in a duopolyVladimir Marianov, H.A. Eiselt and Armin Lüer-Villagra European Journal of Operational Research, 2018, vol. 269, issue 2, 782-792 Abstract: Models for retail store location typically assume that consumers make single purpose trips. However, frequently, consumers purchase more than one product during the same trip. This is the first attempt to propose including multipurpose trips in models locating commercial facilities selling non-essential products. We model and analyze the case in which two firms sell one product or type of products each. Consumers buy one, both, or none, depending on the utility they obtain. We solve 1000 instances and report the results, which indicate that firms significantly benefit from taking into account multipurpose trips when locating their stores. Based on the difficulty to solve one version of the problem, we also derive an efficient heuristic algorithm for the solution and test its performance. Keywords: Facility location; Multipurpose shopping trips; Store clustering; Leader-follower planning (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:269:y:2018:i:2:p:782-792 DOI: 10.1016/j.ejor.2018.02.024 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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