Constrained location of competitive facilities in the plane

Authors:
Ronald G. McGarvey;Tom M. Cavalier
Affiliations:
RAND, 201 N Craig St, Pittsburgh, PA;The Harold and Inge Marcus Department of Industrial & Manufacturing Engineering, The Pennsylvania State University, 310 Leonhard Building, University Park, PA
Venue:
Computers and Operations Research
Year:
2005

Citing 3
Cited 4

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Strategic design of competing centralized supply chain networks for markets with deterministic demands

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Search region contraction of the weber problem solution on the plane with rectangular forbidden zones

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Abstract

This paper examines a competitive facility location problem occurring in the plane. A new gravity-based utility model is developed, in which the capacity of a facility serves as its measure of attractiveness. A new problem formulation is given, having elastic gravity-based demand, along with capacity, forbidden region, and budget constraints. Two solution algorithms are presented, one based on the big square small square method, and the second based on a penalty function formulation using fixed-point iteration. Computational testing is presented, comparing these two algorithms along with a general-purpose nonlinear solver.