EURO 2024 Copenhagen
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4053. Locating multiple facilities on a network to maximize the sum of expected utility

Invited abstract in session MD-61: Location under uncertainty, stream Locational Analysis.

Monday, 14:30-16:00
Room: S10 (building: 101)

Authors (first author is the speaker)

1. Ken-ichi Tanaka
Keio University

Abstract

We consider the problem of locating multiple facilities on a network. It is assumed that all facilities are owned by a single decision maker, and each facility has an attractiveness. The users' choice behavior of facilities is described by multinomial logit model where the utility of each user is given by an increasing function of the attractiveness of each facility and a decreasing function of the distance to the facility. We consider the problem of finding facility locations that maximize the sum of the expected utilities for all users. This problem is a natural extension of the p-Median problem by assuming probabilistic choice behavior. The proposed model is formulated as a nonlinear integer programming problem. We present two solution approaches. One is based on a formulation in which the objective function is approximated by a set of linear functions, and the other is a heuristic method based on vertex substitution. Using example road networks, we investigate how the distance decay coefficient affects the locational patterns of facilities. In addition, we present a generalized problem involving optimization of the facility size under the budget constraints.

Keywords

Status: accepted

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