Two Bi-objective Optimization Models for Competitive Location Problems

This paper deals with two bi-objective models arising from competitive location problems. The first model simultaneously intends to maximize market share and to minimize cost. The second one aims to maximize both profit and the profit margin. We study some of the related properties of the models, examine relations between the models and a single objective parametric integer programming problem, and then show how both bi-objective location problems can be solved through the use of a single objective parametric integer program. Based on this, we propose two methods of obtaining a set of efficient solutions to the problems of fundamental approach. Finally, a numerical example is presented to illustrate the solution techniques.