Optimizing the size and locations of facilities in competitive multi-site service systems

We propose a multi-site location–allocation model for selecting locations in competitive service systems. Examples are typical franchise systems or retailers with multiple outlets. The proposed objective function maximizes a measure of spatial utility of users subject to constraints on waiting time of users and budget of the multi-site facility owners. The intent is to provide model support in assisting with decisions by one multi-facility owner about locating new sites or closing current sites in the presence of one or more competitors, each of which control several sites. Algorithms and spatial data necessary for solving the problem are described. The model is described in the context of locating bank branches though it is applicable in many other contexts.