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A bi-level branch-and-bound algorithm for the capacitated competitive facility location problem

Vahid Mahmoodian(Mahmoodian***at***mail.usf.edu)
Hadi Charkhgard(hcharkhgard***at***usf.edu)
Yu Zhang(yuzhang***at***usf.edu)

Abstract: Competitive facility location problem is a typical facility locating optimization problem but in a competitive environment. The main characteristic of this problem is the competitive nature of the market. In essence, the problem involves two competitors, i.e., a leader and a follower, who seek to attract customers by establishing new facilities to maximize their own profit. In this research, the capacitated competitive facility location problem is considered in which customers may be rejected by a facility because of capacity limitation. A branch-and-bound algorithm is proposed to solve this problem. An extensive computational study is provided to show the performance of the algorithm.

Keywords: Capacitated competitive facility location, Bi-level, Branch-and-bound algorithm, Game theory

Category 1: Combinatorial Optimization (Branch and Cut Algorithms )

Category 2: Applications -- OR and Management Sciences (Supply Chain Management )

Citation: University of South Florida, May/2019

Download: [PDF]

Entry Submitted: 10/18/2019
Entry Accepted: 10/20/2019
Entry Last Modified: 10/18/2019

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