Investigating the location-routing problem in the competitive environment Online publication date: Mon, 04-Oct-2021
by Hasan Hosseini-Nasab; Mahdi Tavana-Chehartaghi
International Journal of Logistics Economics and Globalisation (IJLEG), Vol. 9, No. 2, 2021
Abstract: Location of facilities and routing of customer service are important factors in the competitive environment. This paper presents a new approach for market share using the location-routing problem within a competitive environment in which the competition is considered as a simultaneous game between the players. Two mathematical models are proposed for determining the share of the main and rival player in a competitive environment and then a hybrid metaheuristic model is presented for solving the related location-routing problem. The market share of each player is determined by solving a game and finding the Nash equilibrium and then, a location routing problem is solved for each player per each Nash equilibrium point. The information of a real case in the field of pizza distribution in an area of Mashhad, Iran, was used. The results show the proper performance of the proposed model for gaining maximum market share by competitors taking into account budget constraints.
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