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A Huff-like location model with quality adjustment and/or closing of existing facilities

Author

Listed:
  • G．-Tóth, Boglárka
  • Anton-Sanchez, Laura
  • Fernández, José

Abstract

The problem of an expanding chain in a given area is considered. It may locate a new facility, vary the quality of its existing facilities, close some of them, or a combination of all these possibilities, whatever is the best to maximize its profit, given a budget for the expansion. A new competitive location and design model is proposed that allows all these possibilities. The resulting model is a difficult to solve MINLP problem. A branch-and-bound method based on interval analysis is proposed to cope with it. The method can solve medium-size problems in a reasonable amount of CPU time. An ad-hoc heuristic and a hybrid method that usually find a near-optimal solution in a fraction of time of the exact method are also proposed. Some computational studies are presented to show the performance of the algorithms.

Suggested Citation

  • G．-Tóth, Boglárka & Anton-Sanchez, Laura & Fernández, José, 2024. "A Huff-like location model with quality adjustment and/or closing of existing facilities," European Journal of Operational Research, Elsevier, vol. 313(3), pages 937-953.
    • Handle: RePEc:eee:ejores:v:313:y:2024:i:3:p:937-953
    DOI: 10.1016/j.ejor.2023.08.054
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