This research highlights the use of game theory to solve the classical problem of the uncapacitated facility location optimization model with customer order preferences through a bilevel approach. The bilevel model provided herein consists of the classical facility location problem and an optimization of the customer preferences, which are the upper and lower level problems, respectively. Also, two reformulations of the bilevel model are presented, reducing it into a mixed‐integer single‐level problem. An evolutionary algorithm based on the equilibrium in a Stackelberg’s game is proposed to solve the bilevel model. Numerical experimentation is performed in this study and the results are compared to benchmarks from the existing literature on the subject in order to emphasize the benefits of the proposed approach in terms of solution quality and estimation time.
11 February 2020 in Quality and Reliability Engineering International
We investigate Cournot and Stackelberg mixed duopoly models where a state-owned public firm maximizing domestic social surplus, and a foreign firm searching to maximize its own profit, compete. First, we establish the existence and uniqueness results for the Cournot scheme, and propose the agents’ classification as strong or weak according to the agent's optimal reaction function properties at the Cournot equilibrium. Then we examine a desirable role (either leader or follower) of both firms in the Stackelberg schemes and compare the profits and domestic social surplus and the production volumes at each type of Stackelberg equilibrium.
7 May 2012 in Communications in Statistics - Simulation and Computation
Phase I of control analysis requires large amount of data to fit a distribution and estimate the corresponding parameters of the process under study. However, when only individual observations are available, and no a priori knowledge exists, the presence of outliers can bias the analysis. A relatively recent and successful approach to address this situation is Tukey's Control Chart (TCC), a charting method that applies the Box Plot technique to estimate the control limits. This procedure has proven to be effective for symmetric distributions. However, when skewness is present the average run length performance diminishes significantly. This article proposes a modified version of TCC to consider skewness with minimum assumptions on the underlying distribution of observations. Using theoretical results and Monte Carlo simulation, the modified TCC is tested over several distributions proving a better representation of skewed populations, even in cases when only a limited number of observations are available.