A cover based competitive facility location model with continuous demand

Tammy Drezner, Zvi Drezner and Atsuo Suzuki

Naval Research Logistics (NRL), 2019, vol. 66, issue 7, 565-581

Abstract: In this paper we propose and solve a competitive facility location model when demand is continuously distributed in an area and each facility attracts customers within a given distance. This distance is a measure of the facility's attractiveness level which may be different for different facilities. The market share captured by each facility is calculated by two numerical integration methods. These approaches can be used for evaluating functional values in other operations research models as well. The single facility location problem is optimally solved by the big triangle small triangle global optimization algorithm and the multiple facility problem is heuristically solved by the Nelder‐Mead algorithm. Extensive computational experiments demonstrate the effectiveness of the solution approaches.

Date: 2019
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https://doi.org/10.1002/nav.21868

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Persistent link: https://EconPapers.repec.org/RePEc:wly:navres:v:66:y:2019:i:7:p:565-581

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