A Threshold-Satisfying Competitive Location Model

نویسندگان

  • Tammy Drezner
  • Zvi Drezner
  • Shogo Shiode
چکیده

In this paper we consider a location model based on the threshold concept. We find the best location such that the probability of revenues falling short of the threshold is minimized. This objective is appropriate when a firm will not survive if its revenues fall below a known threshold. A new store is to be located. Demand is not deterministic but rather has a statistical distribution. We seek the location at which the probability that the revenues (expressed as market share attracted by the new store) are below a given threshold is minimized. The model is formulated and solved, and computational results are given.

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تاریخ انتشار 2001