THE COMPETITIVE FACILITY LOCATION BASED ON THE ‎SPATIAL INTERACTION MODEL

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ZARRINPOOR NAEME; ESMAEELI MARYAM

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Paper Information

Journal: PRODUCTION AND OPERATIONS MANAGEMENT Year:2012 | Volume:2 | Issue:2 (3) Page(s): 85-100

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Title

THE COMPETITIVE FACILITY LOCATION BASED ON THE ‎SPATIAL INTERACTION MODEL

Author(s)

ZARRINPOOR NAEME | ESMAEELI MARYAM | Issue Writer Certificate

Keywords

FACILITY LOCATIONQ2

COMPETITIVE ENVIRONMENTQ2

‎‏ ‏SPATIAL INTERACTION MODELQ2

LOGIT ‎FUNCTIONQ2

GENETIC ALGORITHMQ2

Abstract

In this paper, a nonlinear model for locating service facilities is introduced in a competitive ‎region. In the proposed model the factors of travel time, quality of service facilities and price ‎are considered that are the most important effective factors in attracting and maintaining the ‎customers in the COMPETITIVE ENVIRONMENTs. For identifying the customers’ probabilistic ‎behavior in selecting the competitor’s and entering firm’s facilities, the spatial interaction ‎model and Logit function are used. Since the decision making for locating is not only based on ‎the sale quantity and market demand captured and ignoring other important organizational ‎goals such as minimizing the cost may provide problems in long term for firms, therefore in ‎addition to the capturing demand, the fixed cost of locating is considered in the model that ‎will provide better results in the real world problems. Due to the computational complexity, a ‎genetic algorithm is developed for solving the model. The numerical results verify the ‎performance of the proposed model and effectiveness of‏ ‏‎ the GENETIC ALGORITHM in solving it‏ ‏and show that the study of costumers’‎‏ ‏probabilistic demand considering the factors of price, ‎travel time and quality of service facilities has the major role in the increasing of sale and profit ‎of the entering firm, so that, in spite of selecting the most appropriate locations by the ‎competitor, the‏ ‏sale and profit quantities of entering firm are more than the competitor’s, in the ‎equal situation of price, quality and number of facilities.‎

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APA: Copy

ZARRINPOOR, NAEME, & ESMAEELI, MARYAM. (2012). THE COMPETITIVE FACILITY LOCATION BASED ON THE ‎SPATIAL INTERACTION MODEL. PRODUCTION AND OPERATIONS MANAGEMENT, 2(2 (3)), 85-100. SID. https://sid.ir/paper/217498/en

Vancouver: Copy

ZARRINPOOR NAEME, ESMAEELI MARYAM. THE COMPETITIVE FACILITY LOCATION BASED ON THE ‎SPATIAL INTERACTION MODEL. PRODUCTION AND OPERATIONS MANAGEMENT[Internet]. 2012;2(2 (3)):85-100. Available from: https://sid.ir/paper/217498/en

IEEE: Copy

NAEME ZARRINPOOR, and MARYAM ESMAEELI, “THE COMPETITIVE FACILITY LOCATION BASED ON THE ‎SPATIAL INTERACTION MODEL,” PRODUCTION AND OPERATIONS MANAGEMENT, vol. 2, no. 2 (3), pp. 85–100, 2012, [Online]. Available: https://sid.ir/paper/217498/en

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