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An Analysis of Private and Public Sector Location Models


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  • Charles Revelle

    (Cornell University)

  • David Marks

    (The Massachusetts Institute of Technology)

  • Jon C. Liebman

    (The Johns Hopkins University)

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    Recent models of location are drawn together and compared as to structure, criteria, and constraints. Private sector models are distinguished as those in which the total cost of transport and facilities is isolated as the objective to be minimized. The solution techniques of six such models are discussed. Public sector models are characterized by a criterion function involving a surrogate for social utility and by a constraint on investment in facilities or on the number of facilities. Five models with this format are discussed and compared. The two types of problem, location in the private sector and location in the public sector, are seen to have the same conceptual foundation, but formats which differ of necessity due to our inability to relate social utility to dollar value.

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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 16 (1970)
    Issue (Month): 11 (July)
    Pages: 692-707

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    Handle: RePEc:inm:ormnsc:v:16:y:1970:i:11:p:692-707

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    2. Alçada-Almeida, Luís & Coutinho-Rodrigues, João & Current, John, 2009. "A multiobjective modeling approach to locating incinerators," Socio-Economic Planning Sciences, Elsevier, vol. 43(2), pages 111-120, June.
    3. Martello, Silvano & Toth, Paolo, 1995. "The bottleneck generalized assignment problem," European Journal of Operational Research, Elsevier, vol. 83(3), pages 621-638, June.
    4. Lozano, S. & Guerrero, F. & Onieva, L. & Larraneta, J., 1998. "Kohonen maps for solving a class of location-allocation problems," European Journal of Operational Research, Elsevier, vol. 108(1), pages 106-117, July.
    5. Torija, P., 2013. "Do Politicians Serve the One Percent? Evidence in OECD Countries," CITYPERC Working Paper Series 2013-04, Department of International Politics, City University London.
    6. Bilal Farhan & Alan Murray, 2006. "Distance decay and coverage in facility location planning," The Annals of Regional Science, Springer, vol. 40(2), pages 279-295, June.
    7. Maria Bruni & Domenico Conforti & Nicola Sicilia & Sandro Trotta, 2006. "A new organ transplantation location–allocation policy: a case study of Italy," Health Care Management Science, Springer, vol. 9(2), pages 125-142, May.
    8. Grubesic, Tony H. & Matisziw, Timothy C. & Murray, Alan T., 2012. "Assessing geographic coverage of the essential air service program," Socio-Economic Planning Sciences, Elsevier, vol. 46(2), pages 124-135.
    9. Sarin, Subhash C. & Aggarwal, Sanjay, 2001. "Modeling and algorithmic development of a staff scheduling problem," European Journal of Operational Research, Elsevier, vol. 128(3), pages 558-569, February.
    10. Amir Khakbaz & Ali Nookabadi & S. Shetab-bushehri, 2013. "A Model for Locating Park-and-Ride Facilities on Urban Networks Based on Maximizing Flow Capture: A Case Study of Isfahan, Iran," Networks and Spatial Economics, Springer, vol. 13(1), pages 43-66, March.
    11. Owen, Susan Hesse & Daskin, Mark S., 1998. "Strategic facility location: A review," European Journal of Operational Research, Elsevier, vol. 111(3), pages 423-447, December.


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