Abstract
This paper studies the optimal location problem of new enterprises considering the competition cost and location cost under the condition that company A already exists and occupy a favorable market position. Assume the demand points are also the facility candidate points, three optional level construction scale for each facility, and facility attraction is proportional to the infrastructure construction scale. Gravity model will be used to distribute market share. The 0–1 nonlinear integer programming model is set up with the goal of maximizing profit, and the genetic algorithm is designed to solve the problem. The results show that considering the competition cost that may happen at the beginning of site selection is very necessary, which can achieve the purpose of reducing revenue and increasing income. A large number of numerical analyses show that the algorithm is fast and accurate.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
H. Hotelling, Stability in competition. Econ. J. 39(153), 41–57 (1929)
L. Zhang, G. Rushton, Optimizing the size and locations of facilities in competitive multi-site service systems. Comput. Oper. Res. 35(2), 327–338 (2008)
A. Dasci, G. Laporte, Location and pricing decisions of a multi store monopoly in a spatial market. J. Reg. Sci. 44(3), 489–515 (2004)
R. Abooliana, O. Bermanb, D. Krassb, Competitive facility location and design problem. Eur. J. Oper. Res. 182(1), 40–62 (2007)
P.F. Zhu, Research on facility location of logistics company a under the competitive environment (in Chinese), Donghua University (2017)
Y.X. Yang, G.G. Zhou, Study on location model of facility competition for closed loop supply chain network (in Chinese). Chin. J. Manag. Sci. 19(5), 50–57 (2011)
L.X. Zhang, H. Tang, Research on two objective competitive location based on opportunity constraint (in Chinese). Chin. Market 4, 39–42 (2015)
L.L. Sheng, C.X. Wang, Competitive location of logistics distribution centers considering carbon emission (in Chinese). J. Shanghai Marit. Univ. 35(3), 51–56 (2014)
C. Cheng, Y. Zhang, Z.J. Xue, M.Y. Qi, A single-level mixed-integer programming model for the competitive facility location problem (in Chinese). Ind. Eng. J. 20(5), 21–27 (2014)
Y. Gao, Research on competitive location selection with customers choice behavior (in Chinese), Shenzhen University (2017)
D.L. Huff, Defining and estimating a trade area. J. Market. 28(3), 34 (1964)
D.L. Huff, A programmed solution for approximating an optimum retail location. Land Econ. 42(3), 293–303 (1966)
M. Nakanishi, L.G. Cooper, Parameter estimation for a multiplicative competitive interaction model: least squares approach. J. Mark. Res. 11(3), 303–311 (1974)
R.L. Shen, J.Z. Huo, Flow-interception facility location problem under competitive conditions (in Chinese). Oper. Res. Manag. Sci. 3, 97–101 (2013)
P.B. Mirchandani, R. Rebello, A. Agnetis, The inspection station location problem in hazardous material transportation: some heuristics and bounds. INFOR Inf. Syst. Oper. Res. 33, 100–113 (1995)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Yuan, Py., Song, Nx., Xie, Yw. (2019). Research on Facility Location Considering Location Cost and Competition Cost. In: Huang, G., Chien, CF., Dou, R. (eds) Proceeding of the 24th International Conference on Industrial Engineering and Engineering Management 2018. Springer, Singapore. https://doi.org/10.1007/978-981-13-3402-3_42
Download citation
DOI: https://doi.org/10.1007/978-981-13-3402-3_42
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-3401-6
Online ISBN: 978-981-13-3402-3
eBook Packages: Business and ManagementBusiness and Management (R0)