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LOCATING A SINGLE NEW FACILITY AMONG EXISTING, UNEQUALLY ATTRACTIVE FACILITIES *
Author(s) -
Drezner Tammy
Publication year - 1994
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1994.tb00865.x
Subject(s) - facility location problem , sensitivity (control systems) , quality (philosophy) , value (mathematics) , location model , facility management , market size , business , computer science , operations management , environmental economics , operations research , marketing , statistics , economics , mathematics , engineering , commerce , physics , quantum mechanics , electronic engineering
. The location of a new facility in a competitive environment is investigated. It is assumed that customers patronize the facility with the highest utility value rather than the closest facility. Simulations show that the new approach yields a superior location in terms of market size captured. Sensitivity analyses of the problem parameters illustrate the sensitivity of the location and the sensitivity of the market size captured to the facility's quality.