Demand point aggregation analysis for a class of constrained location models: A penalty function approach

Richard L. Francis*, Timothy J. Lowe, Arie Tamir

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

Many location models involve location cost functions that depend on the distances between demand points and new facility locations. There can be so many demand points that they must be aggregated to obtain a tractable model. We consider a class of such problems where the location cost functions appear in both the objective and the constraints. By using the concept of a penalty function we obtain error bounds, that is, upper bounds on the error introduced by aggregation. The error bounds can be used to drive demand point aggregation schemes, and consider both objective error and constraint error.

Original languageEnglish
Pages (from-to)601-609
Number of pages9
JournalIIE Transactions (Institute of Industrial Engineers)
Volume36
Issue number7
DOIs
StatePublished - Jul 2004

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