IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitdm/v05y2006i02ns0219622006002003.html
   My bibliography  Save this article

Networked Facilities Expansion Problem

Author

Listed:
  • LOUIS ANTHONY COX

    (Cox Associates, Inc/NetAdvantage, Denver, Colorado, USA)

  • DJANGIR A. BABAYEV

    (Cox Associates, Inc/NetAdvantage, Denver, Colorado, USA)

Abstract

This paper considers how best to sequence the acquisition of new locations (e.g. office park buildings, multi-tenant units, etc.) to expand the coverage area or fill in the geographic footprint of a network service provider or other business-service activities. Consider several locations, candidates for acquisition, on the plane. Each location will generate a certain revenue stream for the service provider if it is acquired. In addition, once a location has been acquired (i.e. served), it may be less expensive to acquire other nearby locations. The problem addressed in this paper is: Given a finite budget for acquisitions and a model for the acquisition costs, how to sequence the acquisitions to maximize the total new revenue from the locations acquired? A specific cost model is proposed, an integer programming formulation of the problem and its transformations presented. Properties of the models and of the optimal solution are discussed. Finally, an effective heuristic method intended for applications is developed. Features of the solutions are demonstrated by a numerical study.

Suggested Citation

  • Louis Anthony Cox & Djangir A. Babayev, 2006. "Networked Facilities Expansion Problem," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 379-396.
    • Handle: RePEc:wsi:ijitdm:v:05:y:2006:i:02:n:s0219622006002003
    DOI: 10.1142/S0219622006002003
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219622006002003
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219622006002003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitdm:v:05:y:2006:i:02:n:s0219622006002003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitdm/ijitdm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.