Summary of Competitive Facility Location Under Random Utilities and Routing Constraints, by Hoang Giang Pham et al.
Competitive Facility Location under Random Utilities and Routing Constraints
by Hoang Giang Pham, Tien Thanh Dam, Ngan Ha Duong, Tien Mai, Minh Hoang Ha
First submitted to arxiv on: 7 Mar 2024
Categories
- Main: Artificial Intelligence (cs.AI)
- Secondary: None
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Summary difficulty | Written by | Summary |
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High | Paper authors | High Difficulty Summary Read the original abstract here |
Medium | GrooveSquid.com (original content) | Medium Difficulty Summary The paper presents a facility location problem in a competitive market context where customer demand is predicted using a random utility choice model. The authors introduce routing constraints that ensure the selected locations can be visited within a specified tour length, making it computationally challenging due to the non-linear objective function and complex constraints. To tackle this problem, three types of valid cuts are explored: outer-approximation and submodular cuts for the non-linear objective and sub-tour elimination cuts for the routing constraints. Two exact solution methods are developed: a nested cutting plane and nested branch-and-cut algorithms that iteratively add valid cuts to a master problem. The paper also presents a local search-based metaheuristic for solving large-scale instances, demonstrating its pros and cons compared to exact methods. Extensive experiments on varying-sized problem instances show the approach excels in terms of solution quality and computation time. |
Low | GrooveSquid.com (original content) | Low Difficulty Summary The paper solves a location problem that helps businesses choose where to put their facilities based on customer demand. It’s like trying to find the best spots for stores or restaurants. The authors make it more realistic by adding rules about how customers will travel between those locations. They use special math tricks called valid cuts to help solve this complex problem. Two ways to solve it are developed: a precise method that takes some time and another method that uses local search, like trying different routes to find the best one. |
Keywords
* Artificial intelligence * Objective function