The MIIS Eprints Archive

Car Centres Placement Problem

Jaimungal, S. (2011) Car Centres Placement Problem. [Study Group Report]



Deciding on where to locate the next retail outlet is a problem with a long and distinguished history beginning with the early work of Hotelling (1929) and extended by Huff (1964). The basic idea is to view potential customers as sources of purchasing power while a retail store possesses attractiveness thus creating an interacting particle model.

Here, we address the issue of where to locate a new car center based on a limited dataset. A method for distilling aggregate population information down to sub-regions is developed to provide estimates that feed into the optimization algorithm.
Two measures were used in the optimization: (i) total market share and (ii) total attractiveness. Total market share optimization is found to lead to placing the center close to competitors, while total attractiveness optimization is found to lead to placing the center closer to centroid of the population.

Item Type:Study Group Report
Problem Sectors:Discrete
Transport and Automotive
Study Groups:KAUST Study Groups > 1st KSG (Thuwal, Saudi Arabia, Jan 23-26, 2011)
Company Name:Abdul Latif Jameel Co. Ltd
ID Code:343
Deposited By: Dr Kamel Bentahar
Deposited On:29 Jul 2011 11:55
Last Modified:29 May 2015 19:58

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