Competitive Location Problems: Balanced Facility Location and the One-Round Manhattan Voronoi Game

Purpose – The purpose of this paper is to describe and implements an analytic hierarchy process (AHP)-QFD model for selecting the best location from an organization point of view which picks the site with the best opportunity requirements. Integration of AHP-QFD process gives us a new approach to assist organizations through observing various factors and selecting the best location among different alternatives. This approach uses AHP method to match the preferences required by decision makers and these preferences are applied to the characteristics of QFD. The model fundamental requirement are perfect potential locales and the areas are contrasted and both quantitative and qualitative elements to permit directors to join managerial experience and judgment in the answer process. The AHP-QFD model is also applied on a case study to illustrate the solution process. Design/methodology/approach – The integration of AHP and QFD is used to analyze available options and select the best alternative. This can be done by ranking each criterion through a pairwise comparison. Given collected data, the QFD approach is used to find the capability of each criterion. Findings – Integration of AHP-QFD is used to select the best alternative in facility location. This integrated approach can be best used in dealing with facility location problems. Originality/value – The developed AHP-QFD model in facility location problems, facilitates the inclusion of market criteria and decision maker opinion into the traditional cost function, which has been mainly distance base in the literature.

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TWO BI-OBJECTIVE OPTIMIZATION MODELS FOR COMPETITIVE LOCATION PROBLEMS

International Journal of Information Technology & Decision Making ◽

10.1142/s0219622006002118 ◽

2006 ◽

Vol 05 (03) ◽

pp. 531-543 ◽

Cited By ~ 6

Author(s):

FENGMEI YANG ◽

GUOWEI HUA ◽

HIROSHI INOUE ◽

JIANMING SHI

Keyword(s):

Integer Programming ◽

Programming Problem ◽

Efficient Solutions ◽

Integer Program ◽

Location Problems ◽

Optimization Models ◽

Competitive Location ◽

Integer Programming Problem ◽

Single Objective ◽

Parametric Integer Programming

This paper deals with two bi-objective models arising from competitive location problems. The first model simultaneously intends to maximize market share and to minimize cost. The second one aims to maximize both profit and the profit margin. We study some of the related properties of the models, examine relations between the models and a single objective parametric integer programming problem, and then show how both bi-objective location problems can be solved through the use of a single objective parametric integer program. Based on this, we propose two methods of obtaining a set of efficient solutions to the problems of fundamental approach. Finally, a numerical example is presented to illustrate the solution techniques.

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