A soft capacity sequential discrete competitive facility location and design problem

P. Fernández Hernández, G. Méndez-Vogel, A. Lancinskas, J. Zilinskas

A new firm intends to establish its first facilities in a market area where other firms already provide services to customers. The firm must choose not only the location for its new facilities, but also its type from a discrete set of potential designs, which means a maximum capacity of customers it can accommodate. Therefore, we will consider a discrete competitive location and design problem with capacities.
Besides, two rules will be considered in the model, the binary and proportional rules, but their use will be sequential. Once all facilities, both preexisting and new, have been established, each customer’s preferences are evaluated to determine if any facilities meet a pre-defined minimum attraction threshold. If so, its demand is allocated among them following the proportional rule. If not, the binary rule is applied. In both cases, when allocating customers to the entering firm’s facilities, their maximum capacities must be taken into account.

Keywords: Discrete competitive location, facility design, proportional and binary rules

Location, Routes and Inventories II
September 5, 2026  4:00 PM
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