 Designing a service system with price- and distance-sensitive demand: A case study in mining industryPooya Hoseinpour and Ata Jalili Marand European Journal of Operational Research, 2022, vol. 303, issue 3, 1355-1371 Abstract: This study incorporates pricing decision into a congested facility location problem with immobile servers. The operations of facilities are modelled as queueing systems with price- and distance-sensitive streams of customer arrivals. Given a set of potential locations, a central service provider decides on the location of facilities, the allocation of customers to open facilities and also the service rate and price at each facility. The service provider’s profit maximization problem is investigated in two settings, i.e., continuous and discrete service rates, each representing a class of real-world problems. In either case, the resulting mixed-integer non-linear program is reformulated as a mixed-integer second-order cone program which enables us to solve it in a reasonable time using commercial software packages. To demonstrate the applicability of the proposed models, a real-world case in the mining industry is presented and solved. Keywords: OR in service industries; Pricing; Queueing; Service system design; Mixed-integer second-order cone programming (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:303:y:2022:i:3:p:1355-1371 DOI: 10.1016/j.ejor.2022.03.032 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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