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Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering
Joint Location And Cost Planning In Maximum Capture Facility Location Under Random Utilities, Ngan H. Duong, Tien Thanh Dam, Thuy Anh Ta, Tien Mai
Joint Location And Cost Planning In Maximum Capture Facility Location Under Random Utilities, Ngan H. Duong, Tien Thanh Dam, Thuy Anh Ta, Tien Mai
Research Collection School Of Computing and Information Systems
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 demand, assuming that customers choose a facility among all available facilities according to a RUM model. We examine two RUM frameworks in the discrete choice literature, namely, the additive and multiplicative RUM. While the former has been widely used in facility location problems, we are the first to explore the latter in …
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 …