Location of competitive facilities: a comprehensive review and future research agenda

Abstract

PurposeThe research in competitive facility location (CFL) is quite dynamic, both from a problem formulation and an algorithmic point of view. Research direction has changed immensely over the years to address various competitive challenges. This study aims to explore CFL literature to highlight these research trends, important issues and future research opportunities.Design/methodology/approachThis study utilises the Scopus database to search for related CFL models and adopts a five-step systematic approach for the review process. The five steps involve (1) Article Identification and keyword selection, (2) Selection criteria, (3) Literature review, (4) Literature analysis and (5) Research studies.FindingsThe paper presents a comprehensive review of CFL modelling efforts from 1981 to 2021 to provide a depth study of the research evolution in this area. The published articles are classified based on multiple characteristics, including the type of problem, type of competition, game-theoretical approaches, customer behaviour, decision space, type of demand, number of facilities, capacity and budget limitations. The review also highlights the popular problem areas and dedicated research in the respective domain. In addition, a second classification is also provided based on solution methods adopted to solve various CFL models and real-world case studies.Originality/valueThe paper covers 40 years of CFL literature from the perspective of the problem area, CFL characteristics and the solution approach. Additionally, it introduces characteristics such as capacity limit and budget constraint for the first time for classification purposes.