The maximum capture per unit cost location problem
This paper considers the problem of siting p new facilities of an entering firm to a competitive market so as to maximize the market share captured from competitors per unit cost. We first formulate the problem as a mixed 0-1 fractional programming model, in which we incorporate the fixed cost and transportation cost. The model can deal with the case where some demand nodes have two or more possible closest servers. We then re-formulate the problem as a 0-1 mixed integer linear program. We use a one-opt heuristic algorithm based on the Teitz-Bart method to obtain feasible solutions and compare them with the optimal solutions obtained by a branch-and-bound algorithm. We conduct computational experiments to evaluate the two algorithms. The results show that both algorithms can solve the model efficiently and the model is integer-friendly. We discuss other computational results and provide managerial insights.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel Serra & Charles Revelle, 1997. "Competitive location and pricing on networks," Economics Working Papers 219, Department of Economics and Business, Universitat Pompeu Fabra.
- Daniel Serra & Charles Revelle, 1994. "Competitive location in discrete space," Economics Working Papers 96, Department of Economics and Business, Universitat Pompeu Fabra.
- D Serra & S Ratick & C ReVelle, 1996.
"The Maximum Capture Problem with Uncertainty,"
Environment and Planning B,
SAGE Publishing, vol. 23(1), pages 49-59, February.
- D Serra & H A Eiselt & G Laporte & C S ReVelle, 1999.
"Market Capture Models under Various Customer-Choice Rules,"
Environment and Planning B,
SAGE Publishing, vol. 26(5), pages 741-750, October.
- D Serra & H A Eiselt & G Laporte & C S ReVelle, 1999. "Market capture models under various customer-choice rules," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 26(5), pages 741-750, September.
- ReVelle, Charles, 1993. "Facility siting and integer-friendly programming," European Journal of Operational Research, Elsevier, vol. 65(2), pages 147-158, March.
- Li, Han-Lin, 1994. "A global approach for general 0-1 fractional programming," European Journal of Operational Research, Elsevier, vol. 73(3), pages 590-596, March.
- Serra, Daniel & Marianov, Vladimir & ReVelle, Charles, 1992. "The maximum-capture hierarchical location problem," European Journal of Operational Research, Elsevier, vol. 62(3), pages 363-371, November.
- Hansen, Pierre & de Luna Pedrosa Filho, Eugenio & Carneiro Ribeiro, Celso, 1994. "Modelling location and sizing of offshore platforms," European Journal of Operational Research, Elsevier, vol. 72(3), pages 602-606, February.
- Benati, Stefano & Hansen, Pierre, 2002. "The maximum capture problem with random utilities: Problem formulation and algorithms," European Journal of Operational Research, Elsevier, vol. 143(3), pages 518-530, December.
- Carrizosa, Emilio & Conde, Eduardo, 2002. "A fractional model for locating semi-desirable facilities on networks," European Journal of Operational Research, Elsevier, vol. 136(1), pages 67-80, January.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:131:y:2011:i:2:p:568-574. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.