Abstract
In this paper, a flow interception location problem that explicitly considers the types of facilities is presented. We introduce facilities of two different levels of attractiveness: smaller level 1 facilities with smaller construction cost and larger level 2 facilities with larger construction cost. Level 1 facilities attract only customers who pass by facilities on their shortest path route, while level 2 facilities attract customers who can stop over facilities within given extra cost in addition to the original cost of the shortest distance. The problem is to determine the number and location of each facility under the budget constraint in order to maximize the total number of potential customers. We formulate this problem as a 0-1 integer programming problem and present some numerical examples using road network data.
