Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness
We study a competitive facility location problem, in which a company enters a market where competitor’s facilities exist. Customers with elastic buying powers make choices following the gravity rule. Each facility, once open, has an intrinsic fixed attraction to customers. Besides, zone-specialized...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/160295 |
| _version_ | 1826112977617551360 |
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| author | Lin, Yun Hui Tian, Qingyun |
| author2 | School of Civil and Environmental Engineering |
| author_facet | School of Civil and Environmental Engineering Lin, Yun Hui Tian, Qingyun |
| author_sort | Lin, Yun Hui |
| collection | NTU |
| description | We study a competitive facility location problem, in which a company enters a market where competitor’s facilities exist. Customers with elastic buying powers make choices following the gravity rule. Each facility, once open, has an intrinsic fixed attraction to customers. Besides, zone-specialized variable attractiveness can be provided to increase the total attraction of a facility to a specific customer zone. The objective of the company is to maximize profit by determining the locations of the facilities and the facility-customer pairwise attractiveness level, accounting for the expected revenue and the cost. The problem is formulated as a mixed-integer nonlinear program and subsequently solved by a tailored generalized Benders decomposition algorithm with tunable parameters. We then conduct extensive computational studies to demonstrate the efficiency of the algorithm. Finally, we analyze the solution structures under different scenarios and provide managerial implications for real-world applications. |
| first_indexed | 2024-10-01T03:15:40Z |
| format | Journal Article |
| id | ntu-10356/160295 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:15:40Z |
| publishDate | 2022 |
| record_format | dspace |
| spelling | ntu-10356/1602952022-07-19T01:54:22Z Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness Lin, Yun Hui Tian, Qingyun School of Civil and Environmental Engineering Engineering::Civil engineering Competitive Facility Location Demand Elasticity We study a competitive facility location problem, in which a company enters a market where competitor’s facilities exist. Customers with elastic buying powers make choices following the gravity rule. Each facility, once open, has an intrinsic fixed attraction to customers. Besides, zone-specialized variable attractiveness can be provided to increase the total attraction of a facility to a specific customer zone. The objective of the company is to maximize profit by determining the locations of the facilities and the facility-customer pairwise attractiveness level, accounting for the expected revenue and the cost. The problem is formulated as a mixed-integer nonlinear program and subsequently solved by a tailored generalized Benders decomposition algorithm with tunable parameters. We then conduct extensive computational studies to demonstrate the efficiency of the algorithm. Finally, we analyze the solution structures under different scenarios and provide managerial implications for real-world applications. 2022-07-19T01:54:22Z 2022-07-19T01:54:22Z 2021 Journal Article Lin, Y. H. & Tian, Q. (2021). Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness. Computers and Operations Research, 130, 105236-. https://dx.doi.org/10.1016/j.cor.2021.105236 0305-0548 https://hdl.handle.net/10356/160295 10.1016/j.cor.2021.105236 2-s2.0-85101368217 130 105236 en Computers and Operations Research © 2021 Elsevier Ltd. All rights reserved. |
| spellingShingle | Engineering::Civil engineering Competitive Facility Location Demand Elasticity Lin, Yun Hui Tian, Qingyun Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness |
| title | Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness |
| title_full | Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness |
| title_fullStr | Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness |
| title_full_unstemmed | Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness |
| title_short | Generalized Benders decomposition for competitive facility location with concave demand and zone-specialized variable attractiveness |
| title_sort | generalized benders decomposition for competitive facility location with concave demand and zone specialized variable attractiveness |
| topic | Engineering::Civil engineering Competitive Facility Location Demand Elasticity |
| url | https://hdl.handle.net/10356/160295 |
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