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Conditional Median: A Parametric Solution Concept for Location Problems

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  • Włodzimierz Ogryczak
  • Mariusz Zawadzki

Abstract

Classical approaches to location problems are based on the minimization of the average distance (the median concept) or the minimization of the maximum distance (the center concept) to the service facilities. The median solution concept is primarily concerned with the spatial efficiency while the center concept is focused on the spatial equity. The k-centrum model unifies both the concepts by minimization of the sum of the k largest distances. In this paper we investigate a solution concept of the conditional median which is a generalization of the k-centrum concept taking into account the portion of demand related to the largest distances. Namely, for a specified portion (quantile) of demand we take into account the entire group of the corresponding largest distances and we minimize their average. It is shown that such an objective, similar to the standard minimax, may be modeled with a number of simple linear inequalities. Equitable properties of the solution concept are examined. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Włodzimierz Ogryczak & Mariusz Zawadzki, 2002. "Conditional Median: A Parametric Solution Concept for Location Problems," Annals of Operations Research, Springer, vol. 110(1), pages 167-181, February.
    • Handle: RePEc:spr:annopr:v:110:y:2002:i:1:p:167-181:10.1023/a:1020723818980
    DOI: 10.1023/A:1020723818980
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    Citations

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    Cited by:

    1. Amy Givler Chapman & John E. Mitchell, 2018. "A fair division approach to humanitarian logistics inspired by conditional value-at-risk," Annals of Operations Research, Springer, vol. 262(1), pages 133-151, March.
    2. Ghaffarinasab, Nader & Kara, Bahar Y., 2022. "A conditional β-mean approach to risk-averse stochastic multiple allocation hub location problems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    3. Drezner, Tammy & Drezner, Zvi & Hulliger, Beat, 2014. "The Quintile Share Ratio in location analysis," European Journal of Operational Research, Elsevier, vol. 238(1), pages 166-174.
    4. Tammy Drezner & Zvi Drezner & Pawel Kalczynski, 2021. "Directional approach to gradual cover: the continuous case," Computational Management Science, Springer, vol. 18(1), pages 25-47, January.
    5. Pitselis, Georgios, 2017. "Risk measures in a quantile regression credibility framework with Fama/French data applications," Insurance: Mathematics and Economics, Elsevier, vol. 74(C), pages 122-134.
    6. Olender, Paweł & Ogryczak, Włodzimierz, 2019. "A revised Variable Neighborhood Search for the Discrete Ordered Median Problem," European Journal of Operational Research, Elsevier, vol. 274(2), pages 445-465.
    7. Pitselis, Georgios, 2016. "Credible risk measures with applications in actuarial sciences and finance," Insurance: Mathematics and Economics, Elsevier, vol. 70(C), pages 373-386.
    8. Mafusalov, Alexander & Uryasev, Stan, 2016. "CVaR (superquantile) norm: Stochastic case," European Journal of Operational Research, Elsevier, vol. 249(1), pages 200-208.
    9. Włodzimierz Ogryczak, 2009. "Inequality measures and equitable locations," Annals of Operations Research, Springer, vol. 167(1), pages 61-86, March.
    10. Rodríguez-Chía, Antonio M. & Espejo, Inmaculada & Drezner, Zvi, 2010. "On solving the planar k-centrum problem with Euclidean distances," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1169-1186, December.
    11. Tammy Drezner & Zvi Drezner & Pawel Kalczynski, 2019. "A directional approach to gradual cover," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 27(1), pages 70-93, April.
    12. Richard L. Church & Zvi Drezner & Pawel Kalczynski, 2023. "Extensions to the planar p-median problem," Annals of Operations Research, Springer, vol. 326(1), pages 115-135, July.
    13. Mut, Murat & Wiecek, Margaret M., 2011. "Generalized equitable preference in multiobjective programming," European Journal of Operational Research, Elsevier, vol. 212(3), pages 535-551, August.
    14. Pawel Kalczynski & Zvi Drezner, 2021. "The obnoxious facilities planar p-median problem," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(2), pages 577-593, June.
    15. Filippi, C. & Guastaroba, G. & Speranza, M.G., 2021. "On single-source capacitated facility location with cost and fairness objectives," European Journal of Operational Research, Elsevier, vol. 289(3), pages 959-974.

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