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This paper aims to propose a bi-level mixed integer linear location-allocation problem. The upper-level objective function is dedicated to minimizing the total distances covered by customers to meet the p-selected facilities and the fixed cost values for establishing these facilities. While in the lower level, a customer preference function evaluates the priority of customers in selecting facilities.Design/methodology/approachThe solution approach to the proposed model uses the Karush–Kuhn–Tucker (KKT) optimality conditions to the lower-level problem where a set of p-selected facilities are introduced as the selection of the upper-level decision maker. The bi-level model reduces to a single-level model with some added binary variables.FindingsSensitivity analysis of the proposed bi-level model concerning variations of such different parameters as customers’ preferences and the number of selected facilities have been provided, using some numerical examples. Also, locating a recreational facility in Mazandaran province, Iran, has been provided to evaluate the reliability of the proposed model and efficiency of the solution approach, as well.Originality/valueTo the best of the authors’ knowledge, this paper is original and its findings are not available elsewhere.
Journal of Modelling in Management – Emerald Publishing
Published: Nov 26, 2024
Keywords: Bi-level programming; Location-allocation problem; Primal-dual optimality; Locating recreational facility
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