Aggregation without Loss of Optimality in Competitive Location Models
In the context of competitive facility location problems demand points often have to be aggregated due to computational intractability. However, usually this spatial aggregation biases the value of the objective function and the optimality of the solution cannot be guaranteed for the original model. We present a preprocessing aggregation method to reduce the number of demand points which prevents this loss of information, and therefore avoids the possible loss of optimality. It is particularly effective in the frequent situation with a large number of demand points and a comparatively low number of potential facility sites, and coverage defined by spatial nearness. It is applicable to any spatial consumer behaviour model of covering type. This aggregation approach is applied in particular to a Competitive Maximal Covering Location Problem and to a recently developed von Stackelberg model. Some empirical results are presented, showing that the approach may be quite effective. Copyright Springer Science+Business Media, LLC 2007
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.:
- Plastria, Frank, 2002. "Formulating logical implications in combinatorial optimisation," European Journal of Operational Research, Elsevier, vol. 140(2), pages 338-353, July.
- Plastria, Frank, 2001. "Static competitive facility location: An overview of optimisation approaches," European Journal of Operational Research, Elsevier, vol. 129(3), pages 461-470, March.
When requesting a correction, please mention this item's handle: RePEc:kap:netspa:v:7:y:2007:i:1:p:3-18. 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: (Guenther Eichhorn)or (Christopher F. Baum)
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.