Joint location and cost planning in maximum capture facility location under random utilities

• Main Authors: DUONG, Ngan H., DAM, Tien Thanh, TA, Thuy Anh, MAI, Tien
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Competitive facility location; Conic programming; Convex optimization; Joint location and cost optimization; Local search heuristic; Maximum capture; Multiplicative random utility maximization; Outer-approximation; Operations Research, Systems Engineering and Industrial Engineering; Theory and Algorithms
• Online Access: https://ink.library.smu.edu.sg/sis_research/8009; https://ink.library.smu.edu.sg/context/sis_research/article/9012/viewcontent/JointLocationCostPlanning_sv.pdf
• Institution: Singapore Management University

We study a joint facility location and cost planning problem in a competitive market under random utility maximization (RUM) models. The objective is to locate new facilities and make decisions on the costs (or budgets) to spend on the new facilities, aiming to maximize an expected captured customer...