Details

Autor(en) / Beteiligte

• Aboolian, Robert
• Berman, Oded
• Krass, Dmitry

Titel

Competitive facility location model with concave demand

Ist Teil von

• European journal of operational research, 2007-09, Vol.181 (2), p.598-619

Ort / Verlag

Amsterdam: Elsevier B.V

Erscheinungsjahr

2007

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• We consider a spatial interaction model for locating a set of new facilities that compete for customer demand with each other, as well as with some pre-existing facilities to capture the “market expansion” and the “market cannibalization” effects. Customer demand is assumed to be a concave non-decreasing function of the total utility derived by each customer from the service offered by the facilities. The problem is formulated as a non-linear Knapsack problem, for which we develop a novel solution approach based on constructing an efficient piecewise linear approximation scheme for the objective function. This allows us to develop exact and α-optimal solution approaches capable of dealing with relatively large-scale instances of the model. We also develop a fast Heuristic Algorithm for which a tight worst-case error bound is established.