Abstract
This paper considers simultaneously two areas of facility location and assortment planning in a competitive environment. In fact, a chain store that has competitors in the market locates a new facility. As there are different products in the market that can substitute with each other, it is intended to determine the best product assortment as well. An integer nonlinear programming problem is proposed to model the mentioned subject. For solving the model, the problem is reformulated as a mixed integer linear programming one. Therefore, a MIP solver software can be used for solving the small- and medium-size problems. For large-scale problems, a firefly algorithm is designed for obtaining a satisfactory solution. By using the proposed model, it is numerically shown that, in addition to the optimal location, it is also necessary to determine simultaneously the best product assortment for the new store. Actually, comparison results reveal that the location significantly affects the assortment scenarios for the new store. In other words, the selection of new store locations may lead to loss of large profit if the assortment planning is neglected.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Industrial Engineering Computations
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
