IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v273y2019i1p305-319.html
   My bibliography  Save this article

Medical facility network design: User-choice and system-optimal models

Author

Listed:
  • Zhang, Yue
  • Atkins, Derek

Abstract

Motivated by a real-life project, this paper presents several models for designing a network of “walk-in” medical facilities that provide a homogeneous service in competitive and centralized environments. The problem in a competitive environment is to optimize the location and capacity of each open facility for a focal firm so as to maximize its total demand volume, subject to a total capacity limit. We assume that travel time to a facility and expected waiting time at a facility are the two main determinants for clients to choose where to receive the service. We consider two alternative “user-choice” models, one “probabilistic-choice” and the other “deterministic-choice”. In a centralized environment, a central decision maker determines the optimal location and capacity of each open facility, to maximize overall social welfare. We consider a “system-optimal” model and two user-choice models. All the models follow a bilevel structure, i.e., the location-allocation framework. The user-choice models are formulated as mathematical programs with equilibrium constraints. To solve the problems efficiently, we propose a common solution methodology in line with the location-allocation framework. Through a real-life case study, we discuss several interesting managerial insights about model selection and facility network design strategies.

Suggested Citation

  • Zhang, Yue & Atkins, Derek, 2019. "Medical facility network design: User-choice and system-optimal models," European Journal of Operational Research, Elsevier, vol. 273(1), pages 305-319.
    • Handle: RePEc:eee:ejores:v:273:y:2019:i:1:p:305-319
    DOI: 10.1016/j.ejor.2018.08.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221718306854
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2018.08.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Qian Wang & Rajan Batta & Christopher M. Rump, 2004. "Facility location models for immobile servers with stochastic demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(1), pages 137-152, February.
    2. Vedat Verter & Sophie Lapierre, 2002. "Location of Preventive Health Care Facilities," Annals of Operations Research, Springer, vol. 110(1), pages 123-132, February.
    3. Zhang, Yue & Liang, Liping & Liu, Emma & Chen, Chong & Atkins, Derek, 2016. "Patient choice analysis and demand prediction for a health care diagnostics company," European Journal of Operational Research, Elsevier, vol. 251(1), pages 198-205.
    4. Vladimir Marianov, 2003. "Location of Multiple-Server Congestible Facilities for Maximizing Expected Demand, when Services are Non-Essential," Annals of Operations Research, Springer, vol. 123(1), pages 125-141, October.
    5. Blanquero, Rafael & Carrizosa, Emilio & G.-Tóth, Boglárka & Nogales-Gómez, Amaya, 2016. "p-facility Huff location problem on networks," European Journal of Operational Research, Elsevier, vol. 255(1), pages 34-42.
    6. Xiuli Chao & Liming Liu & Shaohui Zheng, 2003. "Resource Allocation in Multisite Service Systems with Intersite Customer Flows," Management Science, INFORMS, vol. 49(12), pages 1739-1752, December.
    7. David L. Huff, 1963. "A Probabilistic Analysis of Shopping Center Trade Areas," Land Economics, University of Wisconsin Press, vol. 39(1), pages 81-90.
    8. Haase, Knut & Müller, Sven, 2014. "A comparison of linear reformulations for multinomial logit choice probabilities in facility location models," European Journal of Operational Research, Elsevier, vol. 232(3), pages 689-691.
    9. Marianov, Vladimir & Rí­os, Miguel & Icaza, Manuel José, 2008. "Facility location for market capture when users rank facilities by shorter travel and waiting times," European Journal of Operational Research, Elsevier, vol. 191(1), pages 32-44, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lin, Yun Hui & Wang, Yuan & He, Dongdong & Lee, Loo Hay, 2020. "Last-mile delivery: Optimal locker location under multinomial logit choice model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    2. Xiang Li & Tianyu Zhang & Liang Wang & Hongguang Ma & Xiande Zhao, 2022. "A minimax regret model for the leader–follower facility location problem," Annals of Operations Research, Springer, vol. 309(2), pages 861-882, February.
    3. Hoseinpour, Pooya & Jalili Marand, Ata, 2022. "Designing a service system with price- and distance-sensitive demand: A case study in mining industry," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1355-1371.
    4. Li, Xin & Pan, Yanchun & Jiang, Shiqiang & Huang, Qiang & Chen, Zhimin & Zhang, Mingxia & Zhang, Zuoyao, 2021. "Locate vaccination stations considering travel distance, operational cost, and work schedule," Omega, Elsevier, vol. 101(C).
    5. Kucukyazici, Beste & Zhang, Yue & Ardestani-Jaafari, Amir & Song, Lijie, 2020. "Incorporating patient preferences in the design and operation of cancer screening facility networks," European Journal of Operational Research, Elsevier, vol. 287(2), pages 616-632.
    6. Page, Kenneth & Pérez, Juan & Telha, Claudio & García-Echalar, Andrés & López-Ospina, Héctor, 2021. "Optimal bundle composition in competition for continuous attributes," European Journal of Operational Research, Elsevier, vol. 293(3), pages 1168-1187.
    7. Fu, Yaping & Wu, Di & Wang, Yan & Wang, Hongfeng, 2020. "Facility location and capacity planning considering policy preference and uncertain demand under the One Belt One Road initiative," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 172-186.
    8. Kaushal Kumar, 2023. "Location Analysis of Primary Health Care Centers: A Case Study of Mohalla Clinics in Delhi," SN Operations Research Forum, Springer, vol. 4(2), pages 1-29, June.
    9. Andreea Avramescu & Richard Allmendinger & Manuel L'opez-Ib'a~nez, 2021. "Managing Manufacturing and Delivery of Personalised Medicine: Current and Future Models," Papers 2105.12699, arXiv.org.
    10. Deng, Yewen & Li, Na & Jiang, Zhibin & Xie, Xiaoqing & Kong, Nan, 2021. "Optimal differential subsidy policy design for a workload-imbalanced outpatient care network," Omega, Elsevier, vol. 99(C).
    11. Klein, Michael G. & Verter, Vedat & Moses, Brian G., 2020. "Designing a rural network of dialysis facilities," European Journal of Operational Research, Elsevier, vol. 282(3), pages 1088-1100.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Yue & Berman, Oded & Verter, Vedat, 2009. "Incorporating congestion in preventive healthcare facility network design," European Journal of Operational Research, Elsevier, vol. 198(3), pages 922-935, November.
    2. Zhang, Yue, 2015. "Designing a retail store network with strategic pricing in a competitive environment," International Journal of Production Economics, Elsevier, vol. 159(C), pages 265-273.
    3. Zhang, Yue & Liang, Liping & Liu, Emma & Chen, Chong & Atkins, Derek, 2016. "Patient choice analysis and demand prediction for a health care diagnostics company," European Journal of Operational Research, Elsevier, vol. 251(1), pages 198-205.
    4. Ralf Krohn & Sven Müller & Knut Haase, 2021. "Preventive healthcare facility location planning with quality-conscious clients," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(1), pages 59-87, March.
    5. Teodora Dan & Patrice Marcotte, 2019. "Competitive Facility Location with Selfish Users and Queues," Operations Research, INFORMS, vol. 67(2), pages 479-497, March.
    6. Mejía, Gonzalo & Aránguiz, Raúl & Espejo-Díaz, Julián Alberto & Granados-Rivera, Daniela & Mejía-Argueta, Christopher, 2023. "Can street markets be a sustainable strategy to mitigate food insecurity in emerging countries? Insights from a competitive facility location model," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    7. Jing Yao & Alan T. Murray, 2014. "Locational Effectiveness of Clinics Providing Sexual and Reproductive Health Services to Women in Rural Mozambique," International Regional Science Review, , vol. 37(2), pages 172-193, April.
    8. Vladimir Marianov & H. A. Eiselt & Armin Lüer-Villagra, 2020. "The Follower Competitive Location Problem with Comparison-Shopping," Networks and Spatial Economics, Springer, vol. 20(2), pages 367-393, June.
    9. Jónas Oddur Jónasson & Sarang Deo & Jérémie Gallien, 2017. "Improving HIV Early Infant Diagnosis Supply Chains in Sub-Saharan Africa: Models and Application to Mozambique," Operations Research, INFORMS, vol. 65(6), pages 1479-1493, December.
    10. 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.
    11. Robert Aboolian & Oded Berman & Vedat Verter, 2016. "Maximal Accessibility Network Design in the Public Sector," Transportation Science, INFORMS, vol. 50(1), pages 336-347, February.
    12. Teodora Dan & Andrea Lodi & Patrice Marcotte, 2020. "Joint location and pricing within a user-optimized environment," EURO Journal on Computational Optimization, Springer;EURO - The Association of European Operational Research Societies, vol. 8(1), pages 61-84, March.
    13. Vladimir Marianov & H. A. Eiselt, 2016. "On agglomeration in competitive location models," Annals of Operations Research, Springer, vol. 246(1), pages 31-55, November.
    14. Boffey, Brian & Galvao, Roberto & Espejo, Luis, 2007. "A review of congestion models in the location of facilities with immobile servers," European Journal of Operational Research, Elsevier, vol. 178(3), pages 643-662, May.
    15. Cornelia Schön & Pratibha Saini, 2018. "Market-Oriented Service Network Design When Demand is Sensitive to Congestion," Transportation Science, INFORMS, vol. 52(5), pages 1253-1275, October.
    16. Maryam Radman & Kourosh Eshghi, 2018. "Designing a multi-service healthcare network based on the impact of patients’ flow among medical services," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(3), pages 637-678, July.
    17. Mayadunne, Sanjaya & Johar, Monica & Saydam, Cem, 2018. "Competitive store closing during an economic downturn," International Journal of Production Economics, Elsevier, vol. 199(C), pages 162-178.
    18. Kyosang Hwang & Tooba Binte Asif & Taesik Lee, 2022. "Choice-driven location-allocation model for healthcare facility location problem," Flexible Services and Manufacturing Journal, Springer, vol. 34(4), pages 1040-1065, December.
    19. B. L. Garcia & R. Bekker & R. D. Mei & N. H. Chavannes & N. D. Kruyt, 2021. "Optimal patient protocols in regional acute stroke care," Health Care Management Science, Springer, vol. 24(3), pages 515-530, September.
    20. Paul Cheshire & Christian Hilber & Piero Montebruno & Rosa Sanchis-Guarner, 2018. "Take Me to the Centre of Your Town! Using Micro-geographical Data to Identify Town Centres," CESifo Economic Studies, CESifo Group, vol. 64(2), pages 255-291.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:273:y:2019:i:1:p:305-319. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.