Bi-level Program on Competitive Location of Logistics Distribution Center

摘要

When decision makers locate logistics distribution centers they will compete with the existing ones and with each other at the same time. The nonlinear bi-level program is modeled for two decision makers under network location environment. The upper and lower objective function is to maximize respective net profit which is the difference of profit and investment cost. Genetic algorithm is applied to solve the problem. A numerical example is also given to show the application. And the result shows that the decision maker who first locates is more dominant than the decision maker who locates later in the competition.