In:
Journal of the Royal Statistical Society Series C: Applied Statistics, Oxford University Press (OUP), Vol. 72, No. 1 ( 2023-03-06), p. 165-187
Abstract:
The competitive facility location problem arises when businesses plan to enter a new market or expand their presence. We introduce a Bayesian spatial interaction model which provides probabilistic estimates on location-specific revenues and then formulate a mathematical framework to simultaneously identify the location and design of new facilities that maximise revenue. To solve the allocation optimisation problem, we develop a hierarchical search algorithm and associated sampling techniques that explore geographic regions of varying spatial resolution. We demonstrate the approach by producing optimal facility locations and corresponding designs for two large-scale applications in the supermarket and pub sectors of Greater London.
Type of Medium:
Online Resource
ISSN:
0035-9254
,
1467-9876
DOI:
10.1093/jrsssc/qlad003
Language:
English
Publisher:
Oxford University Press (OUP)
Publication Date:
2023
detail.hit.zdb_id:
204797-4
detail.hit.zdb_id:
1482300-7
detail.hit.zdb_id:
1476894-X
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