Research on Facility Location Considering Location Cost and Competition Cost

  • Pi-ye Yuan
  • Nai-xu SongEmail author
  • Ya-wen Xie
Conference paper


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.


Competitive location Genetic algorithm Gravity model Nonlinear programming 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Department of Management EngineeringQingdao University of TechnologyQingdaoChina

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