English

Optimizing Luxury Vehicle Dealership Networks: A Graph Neural Network Approach to Site Selection

Machine Learning 2024-11-20 v2 Social and Information Networks

Abstract

This study presents a novel application of Graph Neural Networks (GNNs) to optimize dealership network planning for a luxury car manufacturer in the U.S. By conducting a comprehensive literature review on dealership location determinants, the study identifies 65 county-level explanatory variables, augmented by two additional measures of regional interconnectedness derived from social and mobility data. An ablation study involving 34 variable combinations and ten state-of-the-art GNN operators reveals key insights into the predictive power of various variables, particularly highlighting the significance of competition, demographic factors, and mobility patterns in influencing dealership location decisions. The analysis pinpoints seven specific counties as promising targets for network expansion. This research not only illustrates the effectiveness of GNNs in solving complex geospatial decision-making problems but also provides actionable recommendations and valuable methodological insights for industry practitioners.

Keywords

Cite

@article{arxiv.2408.13961,
  title  = {Optimizing Luxury Vehicle Dealership Networks: A Graph Neural Network Approach to Site Selection},
  author = {Luca Silvano Carocci and Qiwei Han},
  journal= {arXiv preprint arXiv:2408.13961},
  year   = {2024}
}

Comments

Accetped at IEEE BigData 2024, 10 pages, 4 figures, 6 tables, code and data are available at https://github.com/carocciluca/gnn-site-selection