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Estimating the Pareto front of a hard bi-criterion competitive facility location problem. (English) Zbl 1355.90036
Pardalos, Panos M. (ed.) et al., Advances in stochastic and deterministic global optimization. Cham: Springer (ISBN 978-3-319-29973-0/hbk; 978-3-319-29975-4/ebook). Springer Optimization and Its Applications 107, 255-272 (2016).
Summary: We deal with the location problem for a franchise type expanding firm in competition with other firms in a geographical area. The firm aims at maximization of the market share captured by the new facilities and minimization of the lost market share of the old facilities caused by the entering of the new facilities in the market. The market share of each facility is estimated assuming that customers are served by the most attractive facility. A new tie breaking rule is introduced to serve the customers for which there are more than one facility with the maximum attraction, which leads to a hard nonlinear bi-objective optimization problem. A heuristic algorithm is proposed which obtains a good approximation of the Pareto front when the new facilities have to be selected from a finite set of candidates.
For the entire collection see [Zbl 1359.90005].
90B80 Discrete location and assignment
90C29 Multi-objective and goal programming
Full Text: DOI
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