Research On Chain Stores Location And Design Problem

Location problem is ubiquitous in the field of operational research and managementscience, which has widespread use in traffic, logistic, chain operating, communication, andpublic service. This article focus on the facility location problem about flow interception,which analyzes the location of chain stores captured by passing customer flows, such asself-service bank, gas station, and convenient stores. Chain operating, called the industryof location, which is greatly influenced by location decision. The location problem ofchain stores also belongs to competitive location problem, which has already attractedbroad focus.Firstly, this article introduces the development of chain operating and summarizes thetheories on facility location problem. Secondly, this article analyzes the allocation ofcustomer flow, focus on the definition of each chain store’s quality attraction and distanceattraction, which lays the foundation of the location and design model. Thirdly, this articleputs design factor into traditional location problem, brings in the space interaction model,and proposes a flow interception and design model in competitive environment, whichconsiders both location and service counter number, gives a heuristic algorithm and solvesthe model. Finally, this article concludes the main content, and presents a prospect onfurther studies.This article extended the traditional location problem about flow interception,proposed a model that simultaneously optimize the decisions of location and servicecounter number. This model we proposed fits the fact better and benefit saving the cost ofchain stores operators. In addition, this model can be extended and replicable, and can bean effective solution to location problem of chain stores.