G-2005-25
The Maximum Return-on-investment Plant Location Problem with Market Share
Jack Brimberg, Pierre Hansen, Gilbert Laporte, Nenad Mladenović et Dragan Urosević
This paper examines the plant location problem under the objective of maximizing return-on-investment. However, in place of the standard assumption that all demands must be satisfied, we impose a minimum acceptable level on market share. The model presented takes the form of a linear fractional mixed integer program. Based on prop- erties of the model, a local search procedure is developed to solve the problem heuris- tically. Variable neighborhood search and tabu search heuristics are also developed and tested. Thus, a useful extension of the simple plant location problem is examined, and heuristics are developed for the first time to solve realistic instances of this problem.
Paru en mars 2005 , 17 pages