Article ID: | iaor20052049 |
Country: | United Kingdom |
Volume: | 32 |
Issue: | 2 |
Start Page Number: | 359 |
End Page Number: | 378 |
Publication Date: | Feb 2005 |
Journal: | Computers and Operations Research |
Authors: | Cavalier Tom M., McGarvey Ronald G. |
Keywords: | programming: nonlinear |
This paper examines a competitive facility location problem occurring in the plane. A new gravity-based utility model is developed, in which the capacity of a facility serves as its measure of attractiveness. A new problem formulation is given, having elastic gravity-based demand, along with capacity, forbidden region, and budget constraints. Two solution algorithms are presented, one based on the big square small square method, and the second based on a penalty function formulation using fixed-point iteration. Computational testing is presented, comparing these two algorithms along with a general-purpose nonlinear solver.