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Location of retail facilities under conditions of uncertainty

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  • Tammy Drezner

Abstract

Models for the optimal location of retail facilities are typically premised on current market conditions. In this paper we incorporate future market conditions into the model for the location of a retail facility. Future market conditions are analyzed as a set of possible scenarios. We analyze the problem of finding the best location for a new retail facility such that the market share captured at that location is as close to the maximum as possible regardless of the future scenario. The objective is the minimax regret which is widely used in decision analysis. To illustrate the models an example problem is analyzed and solved in detail. Copyright Springer Science+Business Media, LLC 2009

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  • Tammy Drezner, 2009. "Location of retail facilities under conditions of uncertainty," Annals of Operations Research, Springer, vol. 167(1), pages 107-120, March.
    • Handle: RePEc:spr:annopr:v:167:y:2009:i:1:p:107-120:10.1007/s10479-007-0253-6
    DOI: 10.1007/s10479-007-0253-6
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    Cited by:

    1. Drezner, Zvi & Eiselt, H.A., 2024. "Competitive location models: A review," European Journal of Operational Research, Elsevier, vol. 316(1), pages 5-18.
    2. Fusheng Wang, 2013. "A hybrid algorithm for linearly constrained minimax problems," Annals of Operations Research, Springer, vol. 206(1), pages 501-525, July.
    3. Zvi Drezner & Dawit Zerom, 2023. "Competitive facility location under attrition," Computational Management Science, Springer, vol. 20(1), pages 1-19, December.
    4. Mark Horner & Michael Widener, 2011. "The effects of transportation network failure on people’s accessibility to hurricane disaster relief goods: a modeling approach and application to a Florida case study," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 59(3), pages 1619-1634, December.
    5. Felipe Caro & Kumar Rajaram & Jens Wollenweber, 2012. "Process Location and Product Distribution with Uncertain Yields," Operations Research, INFORMS, vol. 60(5), pages 1050-1063, October.
    6. Shahzad Bhatti & Michael Lim & Ho-Yin Mak, 2015. "Alternative fuel station location model with demand learning," Annals of Operations Research, Springer, vol. 230(1), pages 105-127, July.

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