Location models and GIS tools for retail site location

Abstract

Competitive location models and GIS are combined to build decision-aid tools in a franchise distribution system when a single facility has to be located in a continuous space. Several objectives are involved, which are sometimes in conflict, and a certain equilibrium among these objectives is desirable. Competitive location models are used to represent the interrelationships among decision makers, and GIS tools are designed to provide both a map representing market share and a map showing the cannibalization effect. These tools allow the incorporation of forbidden regions and other restrictions and visualization of the effects produced by the opening of a new facility.