The Obnoxious Competitive Facility Location Model

Abstract

In this paper we propose a new competitive location model that considers the possible negative impact generated by competing facilities (such as cannabis dispensaries) on surrounding communities. The facilities cannot be located too close to the communities. Therefore, when distances are Euclidean, the facilities must be located at a point outside a set of circles centered at the communities. After formulating the model, a specially designed efficient algorithm that solves the single facility location problem within a given relative accuracy of optimality is constructed. A total of 128 instances are solved in a relatively short time. The largest instance of 10 existing competing facilities and 20,000 demand points was solved in less than 15 minutes of computer time. This new model opens avenues for future research by designing similar new models. Also, the algorithm designed in this paper can be applied to solving other location problems with outside of a set of circles constraints.