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Competitive Facility Location with Selfish Users and Queues

Author

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  • Teodora Dan

    (Department of Computer Science and Operations Research, University of Montreal, Montreal, Quebec H3C 3J7, Canada)

  • Patrice Marcotte

    (Department of Computer Science and Operations Research, University of Montreal, Montreal, Quebec H3C 3J7, Canada)

Abstract

In a competitive environment, we consider the problem faced by a service firm that makes decisions with respect to both the location and service levels of its facilities, taking into account that users patronize the facility that maximizes their individual utility, expressed as the sum of travel time, queueing delay, and a random term. This situation can be modelled as a bilevel program that involves discrete and continuous variables as well as linear and nonlinear (convex and nonconvex) functions. We design for its solution an algorithm based on piecewise linear approximation as well as a matheuristic that exploits the very structure of the problem.

Suggested Citation

  • Teodora Dan & Patrice Marcotte, 2019. "Competitive Facility Location with Selfish Users and Queues," Operations Research, INFORMS, vol. 67(2), pages 479-497, March.
    • Handle: RePEc:inm:oropre:v:67:y:2019:i:2:p:479-497
    DOI: 10.1287/opre.2018.1781
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Iacocca, Kathleen & Mahar, Stephen & Daniel Wright, P., 2022. "Strategic horizontal integration for drug cost reduction in the pharmaceutical supply chain," Omega, Elsevier, vol. 108(C).
    3. Sneha Dhyani Bhatt & Sachin Jayaswal & Ankur Sinha & Navneet Vidyarthi, 2021. "Alternate second order conic program reformulations for hub location under stochastic demand and congestion," Annals of Operations Research, Springer, vol. 304(1), pages 481-527, September.
    4. Zhang, Wenwei & Xu, Min & Wang, Shuaian, 2023. "Joint location and pricing optimization of self-service in urban logistics considering customers’ choice behavior," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    5. Kobkoon Janngam & Suthep Suantai & Yeol Je Cho & Attapol Kaewkhao & Rattanakorn Wattanataweekul, 2023. "A Novel Inertial Viscosity Algorithm for Bilevel Optimization Problems Applied to Classification Problems," Mathematics, MDPI, vol. 11(14), pages 1-15, July.
    6. 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.
    7. 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.
    8. Xu, Xianhao & Shen, Yaohan & (Amanda) Chen, Wanying & Gong, Yeming & Wang, Hongwei, 2021. "Data-driven decision and analytics of collection and delivery point location problems for online retailers," Omega, Elsevier, vol. 100(C).
    9. Fadda, Edoardo & Manerba, Daniele & Cabodi, Gianpiero & Camurati, Paolo Enrico & Tadei, Roberto, 2021. "Comparative analysis of models and performance indicators for optimal service facility location," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).

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