Congestion Service Facilities Location Problem with Promise of Response Time

Dandan Hu, Zhi-Wei Liu and Wenshan Hu

Mathematical Problems in Engineering, 2013, vol. 2013, 1-11

Abstract:

In many services, promise of specific response time is advertised as a commitment by the service providers for the customer satisfaction. Congestion on service facilities could delay the delivery of the services and hurts the overall satisfaction. In this paper, congestion service facilities location problem with promise of response time is studied, and a mixed integer nonlinear programming model is presented with budget constrained. The facilities are modeled as M/M/c queues. The decision variables of the model are the locations of the service facilities and the number of servers at each facility. The objective function is to maximize the demands served within specific response time promised by the service provider. To solve this problem, we propose an algorithm that combines greedy and genetic algorithms. In order to verify the proposed algorithm, a lot of computational experiments are tested. And the results demonstrate that response time has a significant impact on location decision.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:hin:jnlmpe:716534

DOI: 10.1155/2013/716534

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