Open Access Article SciPap-931
Optimization of the Automotive Service Centre Network for New Entrans Into Czech and Slovak Markets
by Jan Pekárek 1,* and David Schüller 2

1 Faculty of Business and Management, Department of Informatics, Brno University of Technology, Kolejní 4, Brno 61200, Czechia

2 Faculty of Business and Management, Department of Informatics, Brno University of Technology, Kolejní 2906/4, Brno 61200, Czechia

* Authors to whom correspondence should be addressed.

Abstract: The automotive sector is the main driver of industry in both the Slovak and Czech economies. In recent years, rapid and substantive changes have been seen in the development of automotive distribution channels in the Slovak and Czech Republics and this trend can be expected in the future as well. The purpose of this paper is to present a new approach to determine the optimal location of service centres for customers of the automotive industry. The method proposed maximizes a weighted customer utility in terms of density of car-owning residents and the travel distance they need to overcome to reach the nearest station. The application of the proposed method allows automotive companies which are planning to enter new markets to create an optimal distribution network of service centres for customers in the Slovak and Czech Republics. The optimization model approximates the correct number of service centres according to evidence from other countries in the European Union and calculates their optimal spatial placing based on various criteria.

Keywords: Automotive Industry, Optimization, New Entrants Into Markets, Distribution Network, Service Centres Location

JEL classification:   C61 - Optimization Techniques • Programming Models • Dynamic Analysis,   L10 - General,   L19 - Other

SciPap 2018, 26(2), 931

Received: 4 July 2017 / Accepted: 27 June 2018 / Published: 23 August 2018