Abstract
AbstractMulti‐service networks are broadly used in different service industries. Effective design of these networks has a considerable impact on customer satisfaction. Controlling congestion created at service facilities (SFs) is an important function for improving service quality. There are different studies on modeling multi‐service network design, but they mostly neglect incorporating service‐quality aspects such as congestion into their models. This paper considers the problem of simultaneous service portfolio selection, SF location, and capacity planning in a multi‐service network with M/M/1 servers where the total congestion at established facilities should be controlled. The problem is formulated as a fractional 0‐1 programming model, which is linearized in several different ways. The linear reformulations are enhanced by exploiting the special structure of the original model. A comprehensive numerical study is carried out to compare the linear models. Finally, a real case on a community healthcare network is studied to provide a set of managerial insights.
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