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A bi-objective stochastic single facility location model for a supermarket

Author

Listed:
  • Arousha Haghighian Roudsari
  • Kuan Yew Wong

Abstract

Selecting a new location is vital for retail stores such as chain supermarkets and can be considered as a huge competitive advantage which may result in their failure or success. Location models are hard to implement in the real world, firstly because of the uncertainties of the input parameters and secondly, due to the intensive computations involved when the solution space is large such as a city. In this study, a stochastic bi-objective model is developed for point and area destinations with the purpose of finding a single new location for a chain supermarket that aims to be close to more customers and have the minimum number of competitors near to the new location. Customer locations are considered to be regional with a uniform probability distribution. A reduced gradient solution procedure is used as an algorithm for solving the model. The problem is solved with the help of the MATLAB software due to the high computations involved.

Suggested Citation

  • Arousha Haghighian Roudsari & Kuan Yew Wong, 2014. "A bi-objective stochastic single facility location model for a supermarket," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 17(3), pages 257-279.
    • Handle: RePEc:ids:ijsoma:v:17:y:2014:i:3:p:257-279
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