A capacitated competitive facility location problem

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4 Citations (Scopus)

Abstract

We consider a mathematical model similar in a sense to competitive location problems. There are two competing parties that sequentially open their facilities aiming to “capture” customers and maximize profit. In our model, we assume that facilities’ capacities are bounded. The model is formulated as a bilevel integer mathematical program, and we study the problem of obtaining its optimal (cooperative) solution. It is shown that the problem can be reformulated as that of maximization of a pseudo-Boolean function with the number of arguments equal to the number of places available for facility opening. We propose an algorithm for calculating an upper bound for values that the function takes on subsets which are specified by partial (0, 1)-vectors.

Original languageEnglish
Pages (from-to)61-68
Number of pages8
JournalJournal of Applied and Industrial Mathematics
Volume10
Issue number1
DOIs
Publication statusPublished - 1 Jan 2016

Keywords

  • bilevel programming
  • competitive facility location
  • upper bound

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