Competitive Facility Location Using Clustering of Customers

Abstract

Competitive facility location focus on locating facilities by considering the fact of competition in businesses, so every facilities try to reach their reachable shares through competition. Reachable shares have an indirect relation with the distance of facilities to the customer and a direct relation with the attractiveness of the facility. Attractiveness of any facility is depend on variety of reasons such as quality and price. All these factors have a special weight for each customer in different places. In this proposed model, mentioned factors are considered and customers are classified in different branches which in every one of these branches price and quality have different weights. The model is solved in three step. In the first step attractiveness of the facility will be clear, in the second step suitable place for location will be specified and finally at the final step the quality and price of new facility in optimized place will be shown. An example is solved at the end to validate the model.

Keywords

References

[1] Ahn, H. K. ”Competitive facility location: The Voronoi game”. Theoretical Computer Science, 310, p 457-467,2004.
[2] Drezner, T., Z. Drezner, and S. Salhi. “Solving the multiple competitive facilities location problem”. European Journal of Operational Research,142(1): p. 138-151,2002.
[3] Drezner, T. ”Competitive location strategies for two facilities”. Reg Sci Urban Econ,1982.
[4] Hakimi, S.L. “On locating new facilities in a competitive environment”. European Journal of Operational Research,12, p 29-35,1983.
[5] Hakimi, S.L. “p-Median theorems for competitive location”. Annals of Operations Research,5, p 79–88,1986.
[6] Hakimi, S.L. “Locations with spatial interactions: Competitive locations and games”. Francis, R.L., Mirchandani, p 439–478,1990.
[7] Huff, D.L. “Defining and estimating a trade area”. Journal of Marketing Research,. 28: p. 34-38,1964.
[8] Nakanishi, M.C., L.G. “Parameter Estimation for a Multiplicative Competitive”. Interaction Model Least Squares Approach. Journal of Marketing Research,. 11: p. 303-311,1974.
[9] Achabal, D., W. Gorr, and M. V., MULTILOC. “A multiple store location decision model”. J Retailing,. 2: p. 5-25,1982.
[10] Drezner, T. ”Locating a single new facility among existing unequally attractive facilities”.Journal of Regional Science,. 34: p. 237-252,1994.
[11] Plastria, F. and L. Vanhaverbeke,” Discrete models for competitive location with foresight”. Computers and Operations Research. 35(3): p. 683-700,2008.
[12] Drezner, T. and Z. Drezner. “Finding the optimal solution to the Huff based competitive location model”. Comput Mngt Sci,. 2: p. 193-208,2004.
[13] Drezner, T. and Z. Drezner. “Multiple facilities location in the plane using the gravity model”. Geogr Anal. 38: p. 391-406,2006.
[14] Aboolian, R., O. Berman, and D. Krass. “Competitive facility location and design problem”. European Journal of Operational Research. 182(1): p. 40-62,2007.
[15] Uno, T. Katagiri, H.Kato, K. “Competitive facility location with random demands AIP Conference Proceedings” 1174, p. 83-93,2009.
[16] Beresnev, V. L. Mel'nikov, A. A. “Approximate algorithms for the competitive facility location problem”. Journal of Applied and Industrial Mathematics. 5, p180-190,2011.
[17] Küçükaydn, H.Aras, N. Altnel, I. K. “A discrete competitive facility location model with variable attractiveness”. Journal of the Operational Research Society, 62,p. 1726-1741,2011.
[18] Küçükaydn, H. Aras, N.Kuban Altnel, I. “A leaderfollower game in competitive facility location”. Computers and Operations Research. 39, p. 437-448,2012
[19] Saidani, N., F. Chu, and H. Chen. “Competitive facility location and design with reactions of competitors already in the market”. European Journal of Operational Research. 219, p. 9-17,2012.

Files

History

  • Receive Date: 06 December 2014
  • Revise Date: 21 January 2015
  • Accept Date: 17 February 2015
  • Publish Date: 21 September 2015

Share

How to cite

Statistics