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| Bi-Level Optimization Model for Pickup Point Location under Customer Choices |
| CHEN Yiyou，ZHANG Jin，ZENG Qian，LUO Jianqiang |
| 1. Southwest Jiaotong University, Chengdu, China；2. Jiangsu University, Zhenjiang, Jiangsu, China |
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Abstract Customer choice behavior affects the operational efficiency of distribution enterprises’ pickup point network. Customers have reference dependence behavior in the home delivery service and are lack of accurate calculation capability to assess loss value of pick-up service. Customers bounded rationality is depicted by prospect theory and MNL model. The home delivery service and pickup points are simulated as different queueing system and the functions of customers’ expected value under different situations are constructed. Taking the distribution enterprises’ and customers’ different benefits into account, a bi-level optimization model for pickup point location is proposed. Furthermore, an iteration algorithm is designed to solve the upper and lower model based on NSGA-II and immune algorithm, and a numerical example is presented as an illustration. The results verify the validity and feasibility of the model and the algorithm, and show that distribution enterprises should pay attention to customers bounded rationality when layouting pickup points.
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Received: 07 March 2016
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2016, Vol. 13 
