A multiple objective integer programming approach for planning franchise expansion

The number and configuration of franchise outlets in a market defines the distribution strategy of a franchise company. The introduction of new franchise outlets contributes to conflict between the franchisee and franchisor over the degree of market penetration. The selection of sites for new franch...

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Bibliographic Details
Published in:Computers & industrial engineering Vol. 37; no. 3; pp. 543 - 561
Main Authors: Kolli, Sai, Evans, Gerald W.
Format: Journal Article
Language:English
Published: New York Elsevier Ltd 01.11.1999
Pergamon Press Inc
Subjects:
Decision making
Facility location
Franchisees
Franchises
Integer programming
Market penetration
Marketing
Multiple objective optimization
Site selection
Studies
Facility location
Integer programming
Multiple objective optimization
Marketing
ISSN:0360-8352, 1879-0550
Online Access:Get full text
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Summary:The number and configuration of franchise outlets in a market defines the distribution strategy of a franchise company. The introduction of new franchise outlets contributes to conflict between the franchisee and franchisor over the degree of market penetration. The selection of sites for new franchises is an important factor in the long-term profitability of many types of franchises. This selection process requires consideration of objectives of the franchisee and franchisor which are often conflicting in nature. This paper deals with the problem of locating new franchises in an existing franchise network using multiple objective integer programming models and methods.
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ISSN:0360-8352
1879-0550
DOI:10.1016/S0360-8352(00)00027-9