Premium
Optimal Timing and Location in Competitive Markets
Author(s) -
Ghosh Avijit,
Tibrewala Vikas
Publication year - 1992
Publication title -
geographical analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 65
eISSN - 1538-4632
pISSN - 0016-7363
DOI - 10.1111/j.1538-4632.1992.tb00270.x
Subject(s) - preemption , computer science , simple (philosophy) , selection (genetic algorithm) , operations research , artificial intelligence , philosophy , epistemology , engineering , operating system
The choice of a good location strategy is one of the most crucial decisions facing a retailer. While a number of recent articles have addressed the issue of site selection, the related issue of optimal timing and preemption has been largely ignored. In this paper, we present an integrated location allocation model that allows a retailer to formulate an overall location strategy by addressing the questions of how many stores to open, where to open them, and when to open them. In addition, the model explicitly incorporates demand growth scenarios and takes into account the dynamics of competitive actions. As an illustration of its use, the model is applied to a simple yet realistic decision scenario.