Facility Location Using Maximum Covering Model: An Application In Retail Sector

Year 2012, Volume: 16 Issue: 1, 24 - 30, 01.06.2012

Çiğdem Alabaş Uslu

Abstract

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Keywords

Maximum covering, stores location in retail, Huff model

Maksimum Kapsama Modeliyle Tesis Yeri Seçimi: Perakende Sektöründe Bir Uygulama

Abstract

In this study, a store location problem has been addressed for service sector, and a real application problem for a leading firm in modern retail sector in Turkey has been solved by modeling with mathematical programming. Since imitating a store location in retail sector is hard and provides an important competitive edge, determining accurate store locations becomes a critical issue for the management. Application problem solved in this study is to choose appropriate areas for opening stores with different capacities and quantities in Umraniye, Istanbul. The problem has been converted to a maximum set covering model by considering after sales forecasts and also by taking into account several decision criteria foreseen by the management. Optimum solutions of the developed model for different scenarios has been obtained using a package program and presented to the firm management.

Keywords

Maksimum kapsama, perakende mağaza yeri seçimi, Huff modeli

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