On minimax-regret Huff location models

We address the following single-facility location problem: a firm is entering into a market by locating one facility in a region of the plane. The demand captured from each user by the facility will be proportional to the users buying power and inversely proportional to a function of the user-facili...

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Bibliographic Details
Authors: Bello Garboza, Lenys, Blanquero Bravo, Rafael, Carrizosa Priego, Emilio José
Format: article
Status:Versión enviada para evaluación y publicación
Publication Date:2011
Country:España
Institution:Universidad de Sevilla (US)
Repository:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/48018
Online Access:http://hdl.handle.net/11441/48018
https://doi.org/10.1016/j.cor.2010.04.001
Access Level:Open access
Keyword:Continuous location
Huff model
DC functions
DCM functions
Global optimization
Minimax regret
Description
Summary:We address the following single-facility location problem: a firm is entering into a market by locating one facility in a region of the plane. The demand captured from each user by the facility will be proportional to the users buying power and inversely proportional to a function of the user-facility distance. Uncertainty exists on the buying power (weight) of the users. This is modeled by assuming that a set of scenarios exists, each scenario corresponding to a weight realization. The objective is to locate the facility following the Savage criterion, i.e., the minimax-regret location is sought. The problem is formulated as a global optimization problem with objective written as difference of two convex monotonic functions. The numerical results obtained show that a branch and bound using this new method for obtaining bounds clearly outperforms benchmark procedures.