Massive Retail Location Choice as a Human Flow-Covering Problem

Abstract

In this article we reframe the classic problem of massive location choice for retail chains, introducing an alternative approach. Traditional methodologies of massive location choice models encounter limitations rooted in assumptions such as power-law distance decay and oversimplified travel patterns. In response, we present a spatial operations research model aimed at maximizing customer coverage, using massive individual trajectories as a "sampling" of human flows, and thus the model is robust. Formulating the retail location selection problem as a set-covering problem, we propose a greedy solution. Through a case study in Shenzhen utilizing real-world individual trajectory data, our approach demonstrates substantial improvements over prevailing location choices.