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Sequential location of two facilities: comparing random to optimal location of the first facility

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  • Tammy Drezner

    (California State University-Fullerton)

  • Zvi Drezner

    (California State University-Fullerton)

Abstract

We investigate sequential location of two facilities. One strategy is to locate the first facility at its single facility optimum. A second strategy is to randomly locate the first facility. The second facility is then located at its optimal location given the first facility’s location. We investigate which of these two strategies is better. Three objectives are tested: minisum, minimax, and competitive. We considered three environments: uniform demand in a square, discrete demand in the plane, and demand at nodes of a network. For the competitive objective we obtained what might be considered the expected result of locating the first facility optimally is better. For the minisum and minimax objectives, we found a surprising result: it is better to locate the first facility at random. We investigate the reasons behind these results which support the principle of add-heuristics and the greedy randomized adaptive search procedure where the search does not necessarily select the best solution in a greedy sequential approach.

Suggested Citation

  • Tammy Drezner & Zvi Drezner, 2016. "Sequential location of two facilities: comparing random to optimal location of the first facility," Annals of Operations Research, Springer, vol. 246(1), pages 5-18, November.
    • Handle: RePEc:spr:annopr:v:246:y:2016:i:1:d:10.1007_s10479-014-1699-y
    DOI: 10.1007/s10479-014-1699-y
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    References listed on IDEAS

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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. Marilène Cherkesly & Claudio Contardo, 2021. "The conditional p-dispersion problem," Journal of Global Optimization, Springer, vol. 81(1), pages 23-83, September.
    3. Pawel Kalczynski & Jack Brimberg & Zvi Drezner, 2022. "Less is more: discrete starting solutions in the planar p-median problem," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(1), pages 34-59, April.
    4. Jean-Paul Arnaout & John Khoury, 2022. "Adaptation of WO to the Euclidean location-allocation with unknown number of facilities," Annals of Operations Research, Springer, vol. 315(1), pages 57-72, August.
    5. Park, Junseok & Moon, Ilkyeong, 2023. "A facility location problem in a mixed duopoly on networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).

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