Competitive Facility Location Problem with Foresight in Discrete Space based on Tabu Search

Abstract

Abstract-This paper presents the competitive facility location problem with foresight in the discrete space which considers probabilistic customer behavior. A practical bilevel nonlinear integer programming model is formulated to maximize the leader's market share while predicting the follower's response. For solving the model, a two-stage hybrid tabu search algorithm is designed. To illustrate the effectiveness of the proposed algorithm, a set of randomly generated instances are presented and analyzed statistically. The results indicate that the proposed algorithm provides an effective means to solve the problems.