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LocationAnalysisPart2-PMedianModel(1,15)

# LocationAnalysisPart2-PMedianModel(1,15) - Covering vs...

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10/09/11 Discrete Location Models, L. Ozsen 1 Covering vs. Average Dist Models Covering Focus on furthest node from a facility Useful when examining service guarantees and equity of service Average Distance Focus on the demand- weighted average distance between customers (retailers) and service centers (DCs) Useful for cost minimization

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10/09/11 Discrete Location Models, L. Ozsen 2 KEY NOTION: Demand weighted distance Dem wtd total distance = (80)10+(100)8+(30)15+(20)12 =2290 Dem wtd avg dist = 2290/(80+100+30+20)=9.95 Not equal to “avg” dist of (10+8+12+15)/4=11.25 80 30 20 100 10 12 15 8
10/09/11 Discrete Location Models, L. Ozsen 3 P-median Problem Find locations of P facilities to minimize the demand weighted total distance

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Discrete Location Models, L. Ozsen 4 P-median Notation SETs: J is set of candidate facility sites indexed by j I is set of demand nodes indexed by i Input: d ij = distance between node i and site j . h
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LocationAnalysisPart2-PMedianModel(1,15) - Covering vs...

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