EURO 2024 Copenhagen
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270. Extensions to Competitive Facility Location with Multipurpose Trips

Invited abstract in session TC-61: Location with Multiple Actors, stream Locational Analysis.

Tuesday, 12:30-14:00
Room: S10 (building: 101)

Authors (first author is the speaker)

1. Malgorzata Miklas-Kalczynska
Information Systems and Decision Sciences, California State University, Fullerton

Abstract

Competitive facility location models involve locating one or more new facilities on the market where competing facilities already exist. The goal is for the added facilities to capture the maximum possible market share. Recent extensions to the classic competitive facility location problem introduce multi-purpose shopping for complementary or substitute goods. The idea comes from the observation that customers often shop for different goods and visit multiple locations during a single trip. The facilities (called clusters) offering these other goods exist but do not compete with our chain. The multi-purpose, multi-stop models existing in the literature thus far are, in fact, two-purpose, which means that they assume a customer makes either a single stop or two stops before returning to the point of origin.

We formulate an extension to a two-purpose continuous competitive facility location model, introducing the possibility of more than two stops when shopping for complementary goods or services. Our problem is non-linear and non-convex, thus difficult to solve. We provide a solution technique and run experiments on instances incorporating 100 to 20,000 demand points and up to 20 facilities. We compare the solutions obtained by our model to the single-purpose and the two-purpose models. We show that introducing the possibility of more than two stops increases the market share captured by our chain.

Keywords

Status: accepted

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