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An Analysis of Private and Public Sector Location Models


  • Charles Revelle

    (Cornell University)

  • David Marks

    (The Massachusetts Institute of Technology)

  • Jon C. Liebman

    (The Johns Hopkins University)


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.

Suggested Citation

  • Charles Revelle & David Marks & Jon C. Liebman, 1970. "An Analysis of Private and Public Sector Location Models," Management Science, INFORMS, vol. 16(11), pages 692-707, July.
  • Handle: RePEc:inm:ormnsc:v:16:y:1970:i:11:p:692-707

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    Cited by:

    1. Bilal Farhan & Alan Murray, 2006. "Distance decay and coverage in facility location planning," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 279-295, June.
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    3. 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.
    4. repec:eee:transe:v:107:y:2017:i:c:p:38-59 is not listed on IDEAS
    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. 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.
    7. 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.
    8. 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.
    9. repec:eee:soceps:v:59:y:2017:i:c:p:1-12 is not listed on IDEAS
    10. repec:pal:jorsoc:v:56:y:2005:i:2:d:10.1057_palgrave.jors.2601898 is not listed on IDEAS
    11. Martello, Silvano & Toth, Paolo, 1995. "The bottleneck generalized assignment problem," European Journal of Operational Research, Elsevier, vol. 83(3), pages 621-638, June.
    12. 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.
    13. 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.
    14. Gerard Rushton, 1979. "Optimal Location of Facilities," Wholbk, Regional Research Institute, West Virginia University, number 05, November.
    15. 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.
    16. Harper, P. R. & Shahani, A. K. & Gallagher, J. E. & Bowie, C., 2005. "Planning health services with explicit geographical considerations: a stochastic location-allocation approach," Omega, Elsevier, vol. 33(2), pages 141-152, April.

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