11:00 AM - 11:20 AM
[16] The maximum expected flow interception problem in a competitive environment
Keywords:Flow interception problem, probabilistic interception, integer programming problem, competitive environment
We focus on facility location for a new entrant in an area where competitors have their own facilities. We assume that each traveler probabilistically uses a facility on the preplanned travel path, and propose the model that maximizes the expected number of travelers who use a facility of a decision maker. The expected number of facility users depends on the number of facilities passing through before intercepted at a facility. An integer programming formulation of the model incorporating this structure is presented. We apply the model to an example network, and analyze optimal solutions. The results show that new facilities tend to be located at nodes in which they can obtain a large amount of flows from competitors when interception probability is high. We also show that a greedy heuristic method performs well.