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Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering
Robust Maximum Capture Facility Location Under Random Utility Maximization Models, Tien Thanh Dam, Thuy Anh Ta, Tien Mai
Robust Maximum Capture Facility Location Under Random Utility Maximization Models, Tien Thanh Dam, Thuy Anh Ta, Tien Mai
Research Collection School Of Computing and Information Systems
We study a robust version of the maximum capture facility location problem in a competitive market, assuming that each customer chooses among all available facilities according to a random utility maximization (RUM) model. We employ the generalized extreme value (GEV) family of models and assume that the parameters of the RUM model are not given exactly but lie in convex uncertainty sets. The problem is to locate new facilities to maximize the worst-case captured user demand. We show that, interestingly, our robust model preserves the monotonicity and submodularity from its deterministic counterpart, implying that a simple greedy heuristic can guarantee …
Submodularity And Local Search Approaches For Maximum Capture Problems Under Generalized Extreme Value Models, Tien Thanh Dam, Thuy Anh Ta, Tien Mai
Submodularity And Local Search Approaches For Maximum Capture Problems Under Generalized Extreme Value Models, Tien Thanh Dam, Thuy Anh Ta, Tien Mai
Research Collection School Of Computing and Information Systems
We study the maximum capture problem in facility location under random utility models, i.e., the problem of seeking to locate new facilities in a competitive market such that the captured user demand is maximized, assuming that each customer chooses among all available facilities according to a random utility maximization model. We employ the generalized extreme value (GEV) family of discrete choice models and show that the objective function in this context is monotonic and submodular. This finding implies that a simple greedy heuristic can always guarantee a (1−1/e) approximation solution. We further develop a new algorithm combining a greedy heuristic, …