Competitive facility location problem with exotic products

摘要

This paper extends the unlimited capacity location problem with fixed cost in a competitive environment where a firm tends to enter the market competing for exotic products. The demands will increase if a new facility sets into the market. And the demands will be served by both the nearest facilities of the two competitors. A revenue maximization model is presented and a greedy adding and substitution algorithm is proposed to solve it. Then the paper proposes an instance generator to randomly generate some different sizes of instances and make computational experiments to test the algorithm.