Competitive facility location problem with considering service capacity

Competitive facility location problems (CFLP) form a wide class of optimization problems. A new facility is to location and the market share captured by each facility depends on its distance to customers and its location costs. This paper proposes a new location problem of competitive facilities where the service capability of each facility is considered. The aggregation effects which could appear in the process of location are also considered. In order to solve the large size problems, a heuristic algorithm base on greedy idea is proposed. Simulation results show the effectiveness of the algorithm.