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Estimating the Pareto Front of a Hard Bi-criterion Competitive Facility Location Problem

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Advances in Stochastic and Deterministic Global Optimization

Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 107))

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Abstract

We deal with the location problem for a franchise type expanding firm in competition with other firms in a geographical area. The firm aims at maximization of the market share captured by the new facilities and minimization of the lost market share of the old facilities caused by the entering of the new facilities in the market. The market share of each facility is estimated assuming that customers are served by the most attractive facility. A new tie breaking rule is introduced to serve the customers for which there are more than one facility with the maximum attraction, which leads to a hard nonlinear bi-objective optimization problem. A heuristic algorithm is proposed which obtains a good approximation of the Pareto front when the new facilities have to be selected from a finite set of candidates.

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Acknowledgements

This research has been supported by the Ministry of Economy and Competitiveness of Spain (MTM2015-70260-P), the Program to Support Research of the Seneca Foundation (The Agency of Science and Technology of the Region of Murcia, 19241/PI/14).

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Authors and Affiliations

  1. Institute of Mathematics and Informatics, Vilnius University, Akademijos 4, LT-08663, Vilnius, Lithuania

    Algirdas Lančinskas & Julius Žilinskas

  2. Department of Statistics and Operations Research, University of Murcia, Murcia, Spain

    Pascual Fernández & Blas Pelegrín

Authors
  1. Algirdas Lančinskas
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  2. Pascual Fernández
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  3. Blas Pelegrín
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  4. Julius Žilinskas
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Correspondence to Algirdas Lančinskas .

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Editors and Affiliations

  1. Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida, USA

    Panos M. Pardalos

  2. Cardiff School of Mathematics, Cardiff University, Cardiff, United Kingdom

    Anatoly Zhigljavsky

  3. Institute of Mathematics and Informatics, Vilnius University, Vilnius, Lithuania

    Julius Žilinskas

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Lančinskas, A., Fernández, P., Pelegrín, B., Žilinskas, J. (2016). Estimating the Pareto Front of a Hard Bi-criterion Competitive Facility Location Problem. In: Pardalos, P., Zhigljavsky, A., Žilinskas, J. (eds) Advances in Stochastic and Deterministic Global Optimization. Springer Optimization and Its Applications, vol 107. Springer, Cham. https://doi.org/10.1007/978-3-319-29975-4_14

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