TY - JOUR
ID - 72776
TI - A Non-linear Integer Bi-level Programming Model for Competitive Facility Location of Distribution Centers
JO - International Journal of Engineering
JA - IJE
LA - en
SN - 1025-2495
AU - Khanlarzade, Narges
AU - Farughi, Hiwa
AU - Nakhai Kamalabadi, Isa
AU - Yousefi Yegane, Babak
AD - Industrial Engineering, Tarbiat Modares University
AD - Industrial Engineering, University of Kurdistan
AD - , Islamic Azad University, Malayer Branch, Malayer,
Y1 - 2016
PY - 2016
VL - 29
IS - 8
SP - 1131
EP - 1140
KW - Bi level programming
KW - competitive facility location
KW - Ant Colony Algorithm
KW - Supply chain
DO -
N2 - The facility location problem is a strategic decision-making for a supply chain, which determines the profitability and sustainability of its components. This paper deals with a scenario where two supply chains, consisting of a producer, a number of distribution centers and several retailers provided with similar products, compete to maintain their market shares by opening new distribution centers because of increase in demand. The competition problem is formulated as a non-linear integer bilevel mathematical model, where the upper level represents the decisions of the leader producer and the lower level administrates the decisions of the follower producer. It has been shown that even small-scale, bilevel mathematical programming problems are strongly NP-hard, so an adapted bilevel ant colony algorithm with inter-level information sharing is developed to solve the problem. To evaluate the performance of the developed ant colony algorithm, the upper bound of the competitive facility location problem is determined by solving the upper-level problem as an integer linear programming model without considering the followerâ€™s decision. Comparing the computational results of the developed ant colony algorithm with those of the determined upper bounds shows the satisfactory capability of the proposed approach of solving even medium- and large-scale problems.
UR - https://www.ije.ir/article_72776.html
L1 - https://www.ije.ir/article_72776_85f8ce3620554e719a91f5930ed6a8ad.pdf
ER -