Incorporating preferences in continuous location with regional demands

V. Blanco, R. Gázquez Torres, M. Leal Palazón

Utility Theory has extensively analyzed customer preferences when purchasing goods and services. This theory makes the decisions about the best ways of satisfying customer's demands easier for the companies. In the work we present, we analyze the incorporation of preference measures to the continuous facility location problem with regional demands.

In the proposed framework, we assume that each user is served in a spatial region and that a preference function is given over each region. The service points of the demand regions are served from a new central facility. The goal is to determine the locations of the service points in each demand region and the location of the new central facility at minimum transportation cost and reaching certain preference levels of the customers. We consider different preference functions. An application of the proposed model can be found, for instance, in the location design of central storehouses and containers of e-commerce companies.

Keywords: Continuous Facility Location, Regional Demands, Preferences, Second Order Cone

Scheduled

GT01 Location IV. Network Design
June 7, 2022  6:40 PM
A15

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