Competitive facility location model with concave demand [An article from: European Journal of Operational Research] | ![Competitive facility location model with concave demand [An article from: European Journal of Operational Research]](http://ecx.images-amazon.com/images/I/51G4P0G7AGL._SL160_.jpg)
 enlarge | Authors: R. Aboolian, O. Berman, D. Krass
Publisher: Elsevier
Category: Book
Buy New: $7.95
Format: Html
Media: Digital
Publication Date: August 1, 2007
Availability: Available for download now
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Product Description
This digital document is a journal article from European Journal of Operational Research, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
We consider a spatial interaction model for locating a set of new facilities that compete for customer demand with each other, as well as with some pre-existing facilities to capture the ''market expansion'' and the ''market cannibalization'' effects. Customer demand is assumed to be a concave non-decreasing function of the total utility derived by each customer from the service offered by the facilities. The problem is formulated as a non-linear Knapsack problem, for which we develop a novel solution approach based on constructing an efficient piecewise linear approximation scheme for the objective function. This allows us to develop exact and @a-optimal solution approaches capable of dealing with relatively large-scale instances of the model. We also develop a fast Heuristic Algorithm for which a tight worst-case error bound is established.
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