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Elsevier, Computers and Operations Research, 1(38), p. 90-97

DOI: 10.1016/j.cor.2010.04.001

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On minimax-regret Huff location models

Journal article published in 2011 by Lenys Bello, Rafael Blanquero, Emilio Carrizosa ORCID
This paper is available in a repository.
This paper is available in a repository.

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Abstract

We address the following single-facility location problem: a firm is entering into a market by locating one facility in a region of the plane. The demand captured from each user by the facility will be proportional to the users buying power and inversely proportional to a function of the user-facility distance. Uncertainty exists on the buying power (weight) of the users. This is modeled by assuming that a set of scenarios exists, each scenario corresponding to a weight realization. The objective is to locate the facility following the Savage criterion, i.e., the minimax-regret location is sought. The problem is formulated as a global optimization problem with objective written as difference of two convex monotonic functions. The numerical results obtained show that a branch and bound using this new method for obtaining bounds clearly outperforms benchmark procedures.