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Location of retail facilities under conditions of uncertainty

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Abstract

Models for the optimal location of retail facilities are typically premised on current market conditions. In this paper we incorporate future market conditions into the model for the location of a retail facility. Future market conditions are analyzed as a set of possible scenarios. We analyze the problem of finding the best location for a new retail facility such that the market share captured at that location is as close to the maximum as possible regardless of the future scenario. The objective is the minimax regret which is widely used in decision analysis. To illustrate the models an example problem is analyzed and solved in detail.

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Authors and Affiliations

  1. Department of ISDS, College of Business and Economics, California State University at Fullerton, Fullerton, CA, 92834, USA

    Tammy Drezner

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  1. Tammy Drezner
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Correspondence to Tammy Drezner.

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Drezner, T. Location of retail facilities under conditions of uncertainty. Ann Oper Res 167, 107–120 (2009). https://doi.org/10.1007/s10479-007-0253-6

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