facilities relocation

Service relocation can be formulated as an optimisation problem that arises primarily in the retail sector when firms seek to redesign their service networks in response to changing market conditions. This problem is typically motivated by factors such as shifts in customer demand, cost pressures, the need to improve service levels, or strategic decisions related to digitalisation. The optimisation process involves determining the optimal location, closure, or consolidation of service facilities while balancing operational costs, accessibility, and service quality. The consequences of service relocation decisions can be significant, affecting not only efficiency and profitability but also customer satisfaction, workforce distribution, and regional economic activity. As a result, careful modelling is required to capture trade-offs between cost minimisation and service performance, as well as the long-term impact on the overall structure of the service network.

In this context, the article (Sierra-Paradinas et al., 2020) presents an optimisation model developed for a company operating in the retail sector that explicitly accounts for the heterogeneous management types of already established service facilities, the existing customer base, and the potential customer disconnections that may result from service relocation decisions. The model aims to minimise customer disconnections by jointly deciding which services should be disconnected and whether changes in the management type of certain facilities are advisable, while ensuring that an adequate overall level of customer satisfaction is maintained across the service network.