2619. Optimizing the Location and Size of Facilities on a Network to Maximize Total Expected Utility
Invited abstract in session MA-48: Location and Logistics, stream Locational Analysis.
Monday, 8:30-10:00Room: Parkinson B09
Authors (first author is the speaker)
| 1. | Ken-ichi Tanaka
|
| Keio University |
Abstract
We consider the problem of determining the location and size of multiple facilities on a network, where all facilities are owned by a single decision-maker. The decision-maker has a discrete set of options for the facility sizes, with larger facilities incurring higher costs. Users' choice behavior in selecting facilities is modeled using a multinomial logit model, where the utility for each user is an increasing function of the facility size and a decreasing function of the distance to the facility. We aim to maximize the total expected utility for all users, subject to the total budget available for locating facilities. We present a nonlinear integer programming formulation of the problem, and propose a solution method based on a subproblem where the objective function is approximated by a set of upper-bound linear functions. The proposed method is applied to road network instances, and the results demonstrate that it generates high-quality solutions within a reasonable amount of time. We examine how the distance deterrence parameter in the multinomial logit model influences the location and size patterns of facilities in the optimal solutions.
Keywords
- Facilities Planning and Design
- Location
Status: accepted
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