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Leader-Follower Models in Facility Location

In: Spatial Interaction Models

Author

Listed:
  • Tammy Drezner

    (California State University)

  • Zvi Drezner

    (California State University)

Abstract

Facility location models deal, for the most part, with the location of plants, warehouses, distribution centers, retail facilities among others. In this chapter we review the game theoretical concept of the leader-follower in facility location models which addresses specific circumstances: (i) competitive location of two facilities anywhere on the plane; (ii) covering a large area by chain facilities so that a future competitor will not be able to attract much demand; (iii) competitive location of two facilities applying the gravity (Huff) rule; (iv) competitive location of multiple facilities using the cover-based rule; and (v)locating facilities on the nodes of a network to cover as much demand as possible following a removal of a link by a follower.

Suggested Citation

  • Tammy Drezner & Zvi Drezner, 2017. "Leader-Follower Models in Facility Location," Springer Optimization and Its Applications, in: Lina Mallozzi & Egidio D'Amato & Panos M. Pardalos (ed.), Spatial Interaction Models, pages 73-104, Springer.
    • Handle: RePEc:spr:spochp:978-3-319-52654-6_5
    DOI: 10.1007/978-3-319-52654-6_5
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    Cited by:

    1. Lin, Yun Hui & Wang, Yuan & Lee, Loo Hay & Chew, Ek Peng, 2022. "Omnichannel facility location and fulfillment optimization," Transportation Research Part B: Methodological, Elsevier, vol. 163(C), pages 187-209.
    2. Dolores R. Santos-Peñate & Clara M. Campos-Rodríguez & José A. Moreno-Pérez, 2020. "A Kernel Search Matheuristic to Solve The Discrete Leader-Follower Location Problem," Networks and Spatial Economics, Springer, vol. 20(1), pages 73-98, March.
    3. Yun Hui Lin & Qingyun Tian & Yanlu Zhao, 2022. "Locating facilities under competition and market expansion: Formulation, optimization, and implications," Production and Operations Management, Production and Operations Management Society, vol. 31(7), pages 3021-3042, July.

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