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On optimal location with treshold requirements

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Abstract

The optimal location of services is one of the most important factors that affects service quality in terms of consumer access. On the other hand, services in general need to have a minimum catchment area so as to be efficient. In this paper a model is presented that locates the maximum number of services that can coexist in a given region without having losses, taking into account that they need a minimum catchment area to exist. The objective is to minimize average distance to the population. The formulation presented belongs to the class of discrete P--median--like models. A tabu heuristic method is presented to solve the problem. Finally, the model is applied to the location of pharmacies in a rural region of Spain.

Suggested Citation

  • Miquel Carreras & Daniel Serra, 1997. "On optimal location with treshold requirements," Economics Working Papers 220, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:220
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    Cited by:

    1. Bruno, Giuseppe & Cavola, Manuel & Diglio, Antonio & Elizalde, Javier & Piccolo, Carmela, 2022. "A locational analysis of deregulation policies in the Spanish retail pharmaceutical sector," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    2. Orsi, Francesco, 2012. "Cutting the carbon emission of international conferences: is decentralization an option?," Journal of Transport Geography, Elsevier, vol. 24(C), pages 462-466.
    3. Widener, Michael J. & Horner, Mark W., 2011. "A hierarchical approach to modeling hurricane disaster relief goods distribution," Journal of Transport Geography, Elsevier, vol. 19(4), pages 821-828.
    4. Xu, Jing & Murray, Alan T. & Church, Richard L. & Wei, Ran, 2023. "Service allocation equity in location coverage analytics," European Journal of Operational Research, Elsevier, vol. 305(1), pages 21-37.
    5. Francisco Silva & Daniel Serra, 2008. "Incorporating waiting time in competitive location models: Formulations and heuristics," Economics Working Papers 1091, Department of Economics and Business, Universitat Pompeu Fabra.
    6. Zhengna Song & Tinggan Yan & Yunjian Ge, 2018. "Spatial Equilibrium Allocation of Urban Large Public General Hospitals Based on the Welfare Maximization Principle: A Case Study of Nanjing, China," Sustainability, MDPI, vol. 10(9), pages 1-23, August.
    7. Teixeira, João C. & Bigotte, João F. & Repolho, Hugo M. & Antunes, António P., 2019. "Location of courts of justice: The making of the new judiciary map of Portugal," European Journal of Operational Research, Elsevier, vol. 272(2), pages 608-620.
    8. Teixeira, Joao C. & Antunes, Antonio P., 2008. "A hierarchical location model for public facility planning," European Journal of Operational Research, Elsevier, vol. 185(1), pages 92-104, February.

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    More about this item

    Keywords

    Discrete facility location; threshold; tabu search;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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