The maximum return-on-investment plant location problem with market share

J Brimberg, P Hansen (), G Laporte, N Mladenović and D Urošević
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J Brimberg: Royal Military College of Canada
P Hansen: GERAD and HEC
G Laporte: CRT and HEC
N Mladenović: GERAD and HEC
D Urošević: Mathematical Institute, SANU

Journal of the Operational Research Society, 2008, vol. 59, issue 3, 399-406

Abstract: Abstract This paper examines the plant location problem under the objective of maximizing return-on-investment. However, in place of the standard assumption that all demands must be satisfied, we impose a minimum acceptable level on market share. The model presented takes the form of a linear fractional mixed integer program. Based on properties of the model, a local search procedure is developed to solve the problem heuristically. Variable neighbourhood search and tabu search heuristics are also developed and tested. Thus, a useful extension of the simple plant location problem is examined, and heuristics are developed for the first time to solve realistic instances of this problem.

Keywords: plant location; return-on-investment; market share; linear fractional programming; heuristics (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (4)

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DOI: 10.1057/palgrave.jors.2602349

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