Decision support services for retail site location using a two-stage guiding optimization approach

How best to locate new outlets among alternative position offerings is a critical operational decision that is faced by all retailers. Thus they are eager to have a quantitative method and tool to help them derive more scientific strategic suggestions. In this paper, the retail site location (RSL) problem is described at the beginning. Then we propose a two-stage guiding optimization procedure to guide users finding the best location strategy gradually, with both of the stages formulated subsequently. The first stage relies on finding ldquoidealrdquo optimal solutions without considering the competition from opponents. The second one offers the risk of every solution which is caused by opponents´ activities. Finally, a RSL decision support system based on the new approach and GIS platform is designed and implemented.