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Location models for ceding market share and shrinking services

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  • ReVelle, Charles
  • Murray, Alan T.
  • Serra, Daniel

Abstract

New location models are presented here for exploring the reduction of facilities in a region. The first of these models considers firms ceding market share to competitors under situations of financial exigency. The goal of this model is to cede the least market share, i.e., retain as much of the customer base as possible while shedding costly outlets. The second model considers a firm essentially without competition that must shrink it services for economic reasons. This firm is assumed to close outlets so that the degradation of service is limited. An example is offered within a competitive environment to demonstrate the usefulness of this modeling approach.

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Bibliographic Info

Article provided by Elsevier in its journal Omega.

Volume (Year): 35 (2007)
Issue (Month): 5 (October)
Pages: 533-540

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Handle: RePEc:eee:jomega:v:35:y:2007:i:5:p:533-540

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Keywords: Delocation Plant closure;

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References

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  1. Melachrinoudis, Emanuel & Min, Hokey, 2000. "The dynamic relocation and phase-out of a hybrid, two-echelon plant/warehousing facility: A multiple objective approach," European Journal of Operational Research, Elsevier, vol. 123(1), pages 1-15, May.
  2. Weston, Frederick C., 1982. "Optimal configuration of telephone answering sites in a service industry," European Journal of Operational Research, Elsevier, vol. 10(4), pages 395-405, August.
  3. Klincewicz, John G. & Luss, Hanan & Yu, Chang-Sung, 1988. "A large-scale multilocation capacity planning model," European Journal of Operational Research, Elsevier, vol. 34(2), pages 178-190, March.
  4. ReVelle, Charles, 1993. "Facility siting and integer-friendly programming," European Journal of Operational Research, Elsevier, vol. 65(2), pages 147-158, March.
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Cited by:
  1. Pelegrín, Blas & Fernández, Pascual & Dolores García Pérez, María & Cano Hernández, Saúl, 2012. "On the location of new facilities for chain expansion under delivered pricing," Omega, Elsevier, vol. 40(2), pages 149-158, April.
  2. Eric Delmelle & Jean-Claude Thill & Dominique Peeters & Isabelle Thomas, 2014. "A multi-period capacitated school location problem with modular equipment and closest assignment considerations," Journal of Geographical Systems, Springer, vol. 16(3), pages 263-286, July.
  3. Haase, Knut & Hoppe, Mirko, 2008. "Standortplanung unter Wettbewerb - Teil 1: Grundlagen," Discussion Papers 2/2008, Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics.
  4. Overholts II, Dale L. & Bell, John E. & Arostegui, Marvin A., 2009. "A location analysis approach for military maintenance scheduling with geographically dispersed service areas," Omega, Elsevier, vol. 37(4), pages 838-852, August.
  5. Farahani, Reza Zanjirani & Rezapour, Shabnam & Drezner, Tammy & Fallah, Samira, 2014. "Competitive supply chain network design: An overview of classifications, models, solution techniques and applications," Omega, Elsevier, vol. 45(C), pages 92-118.
  6. Bell, John E. & Griffis, Stanley E. & Cunningham III, William A. & Eberlan, Jon A., 2011. "Location optimization of strategic alert sites for homeland defense," Omega, Elsevier, vol. 39(2), pages 151-158, April.

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