optimization and location-allocation modeling

AM-46 - Location-allocation modeling

Location-allocation models involve two principal elements: 1) multiple facility location; and 2) the allocation of the services or products provided by those facilities to places of demand. Such models are used in the design of logistic systems like supply chains, especially warehouse and factory location, as well as in the location of public services. Public service location models involve objectives that often maximize access and levels of service, while private sector applications usually attempt to minimize cost. Such models are often hard to solve and involve the use of integer-linear programming software or sophisticated heuristics. Some models can be solved with functionality provided in GIS packages and other models are applied, loosely coupled, with GIS. We provide a short description of formulating two different models as well as discuss how they are solved.