Mehdi Ashrafi Helan - Department of Industrial engineering and management systems, Amirkabir University of Technology, Tehran
Heshmaollah Rezaallah
Hamid Davoud pour

Competitive location-price problem represents a case that a new firm decides on delivery price for each market area as well as the location of new facilities. Inthis paper, we consider establishing and production costs for each facility in relation to land, labor and raw material costs, taxes and so on. Homogeneous producedgoods in each market area, that have inelastic demand, would be purchased from the facility that offers the lowest price. the problem maximize profit and we propose a mixed-integer linear programming to formulate it.

Competitive location, discriminatory pricing, linear programming