A Continuous Competitive Facility Location and Design Problem for Firm Expansion
A firm wants to expand its presence in a given geographical region. The available budget can be invested in opening a new facility and/or modifying the qualities of the existing firm-owned facilities. The firm can also close some of its existing facilities in order to invest the money formerly devoted to them to its other facilities or to the new one (in case it is finally open). A MINLP formulation is proposed to model this new problem. Both an exact interval branch-and-bound method and an ad-hoc heuristic are proposed to solve the model. Some computational results are reported.
KeywordsFacility location Competition Quality MINLP Interval analysis Heuristic
- 11.Tóth, B., Fernández, J.: Interval Methods For Single and Bi-Objective Optimization Problems - Applied to Competitive Facility Location Problems. Lambert Academic Publishing, Saarbrücken (2010)Google Scholar