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A Kernel Search Matheuristic to Solve The Discrete Leader-Follower Location Problem

  • Dolores R. Santos-PeñateEmail author
  • Clara M. Campos-Rodríguez
  • José A. Moreno-Pérez
Article
  • 4 Downloads

Abstract

In the leader-follower, (r|p)-centroid or Stackelberg location problem, two players sequentially enter the market and compete to provide goods or services. This paper considers this competitive facility location problem in a discrete space. To solve it, the linear programming formulations for the leader and the follower are integrated into an algorithm which, in an iterative process, finds a solution by solving a sequence of these linear problems. We propose a matheuristic procedure that provides solutions for the leader via a kernel search algorithm. Taking into account binary and S-shaped customer choice rules, we present the computational results obtained and compare the exact algorithm with two versions of the kernel search procedure.

Keywords

Competitive location Leader-follower problem (r|p)-centroid (r|Xp)-medianoid Linear programming Kernel search 

Notes

Acknowledgements

This study was partially funded by Ministerio de Economía y Competitividad (Spanish Government) with FEDER funds, through grants ECO2014-59067-P and TIN2015-70226-R, and also by Fundación Cajacanarias (grant 2016TUR19).

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Instituto de Turismo y Desarrollo Económico Sostenible/Dpto de Métodos Cuantitativos en Economía y GestiónUniversidad de Las Palmas de G.C.Las Palmas de Gran CanariaSpain
  2. 2.Instituto Universitario de Desarrollo RegionalUniversidad de La LagunaLa LagunaSpain

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