Work

Facility Location Under Zone Pricing

Year: 1997

Type: article

Abstract: Zone pricing consists in determining simultaneously several delivered prices together with the zones where these prices apply. A model and algorithm are proposed to determine optimal facility locations, prices, tariff‐zones, and market areas in order to maximize the firm's profit under zone pricing. The resulting nonlinear mixed‐integer program is tackled by projecting the objective function on the price space, solving repeatedly uncapacitated facility location problems for fixed values of the prices. The implicit profit function so defined is optimized by branch‐and‐bound. Computational results are reported.

Source: Journal of Regional Science

DOI: 10.1111/0022-4146.00040

Authors: Pierre Hansen, Dominique Peeters, Jacques‐François Thisse

Institutions: HEC Montréal, Group for Research in Decision Analysis, UCLouvain, KU Leuven, École nationale des ponts et chaussées

Language: English

Topic: Facility Location and Emergency Management

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: bronze

Funders: Natural Sciences and Engineering Research Council of Canada, Office of Naval Research

OpenAlex ID: W2113014463

FWCI: 0.784

Cites:

Cited by: 27

Related to: 10