Exact method for the capacitated competitive facility location problem

摘要

We consider a competition between two parties maximizing their profit from servicing customers. A decision making process is assumed to be organized in a Stackelberg game framework. In the model, we are given with two finite sets: a set of customers and a set of potential facilities' locations. The parties, called the Leader and the Follower, sequentially open their facilities in some of the potential locations. A party opening the most preferable facility for a customer captures him or her. Facilities' capacities are assumed to be finite, and the problem is to decide where to open facilities and how to assign them to service captured customers provided that capacity constraints are satisfied.