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A location-allocation problem for a web services provider in a competitive market

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  • Aboolian, Robert
  • Sun, Yi
  • Koehler, Gary J.

Abstract

Web Services have become a viable component technology in distributed e-commerce platforms. Due to the move to high-speed Internet communication and tremendous increases in computing power, network latency has begun to play a more important role in determining service response time. Hence, the locations of a Web Services provider's facilities, customer allocation, and the number of servers at each facility have a significant impact on its performance and customer satisfaction. In this paper we introduce a location-allocation model for a Web Services provider in a duopoly competitive market. Demands for services of these servers are available at each node of a network, and a subset of nodes is to be chosen to locate one or more servers in each. The objective is to maximize the provider's profit. The problem is formulated and analyzed. An exact solution approach is developed and the results of its efficiency are reported.

Suggested Citation

  • Aboolian, Robert & Sun, Yi & Koehler, Gary J., 2009. "A location-allocation problem for a web services provider in a competitive market," European Journal of Operational Research, Elsevier, vol. 194(1), pages 64-77, April.
    • Handle: RePEc:eee:ejores:v:194:y:2009:i:1:p:64-77
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    References listed on IDEAS

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    1. Hakimi, S. Louis, 1983. "On locating new facilities in a competitive environment," European Journal of Operational Research, Elsevier, vol. 12(1), pages 29-35, January.
    2. Drezner, Zvi, 1982. "Competitive location strategies for two facilities," Regional Science and Urban Economics, Elsevier, vol. 12(4), pages 485-493, November.
    3. Aboolian, Robert & Berman, Oded & Krass, Dmitry, 2007. "Competitive facility location model with concave demand," European Journal of Operational Research, Elsevier, vol. 181(2), pages 598-619, September.
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    Cited by:

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    2. Robert Aboolian & Oded Berman & Dmitry Krass, 2012. "Profit Maximizing Distributed Service System Design with Congestion and Elastic Demand," Transportation Science, INFORMS, vol. 46(2), pages 247-261, May.
    3. Gohram Baloch & Fatma Gzara, 2020. "Strategic Network Design for Parcel Delivery with Drones Under Competition," Transportation Science, INFORMS, vol. 54(1), pages 204-228, January.
    4. Benneyan, James C. & Musdal, Hande & Ceyhan, Mehmet Erkan & Shiner, Brian & Watts, Bradley V., 2012. "Specialty care single and multi-period location–allocation models within the Veterans Health Administration," Socio-Economic Planning Sciences, Elsevier, vol. 46(2), pages 136-148.
    5. Cihan Çetinkaya & Samer Haffar, 2018. "A Risk-Based Location-Allocation Approach for Weapon Logistics," Logistics, MDPI, vol. 2(2), pages 1-15, May.
    6. Mashalah, Heider Al & Hassini, Elkafi & Gunasekaran, Angappa & Bhatt (Mishra), Deepa, 2022. "The impact of digital transformation on supply chains through e-commerce: Literature review and a conceptual framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).

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