Abstract
There is a number of models that take into account the market competition in the location theory. Aboulian R. et al. formulated the location and design problem (CFLDP), in which the share of the market being served elastically varies depending on the location. The models with elastic demand are considered to be rather complicated and advantageous. We developed this problem and proposed the new one which combines CFLDP and classical p-median problem. In the given formulation a number of new facilities is fixed and is equal to p, so competitive p-median facility location and design problem (CPFLDP) has been derived. Therefore, the task can be considered as a clustering problem. In this paper we develop local search algorithms for CPFLDP. A computational experiment is carried out, the results are discussed.
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