Abstract
The p-median problem is among the most popular problem types in combinatorial optimisation with a broad range of application areas from facility location–allocation and network design to data mining and pattern recognition. This paper studies a variant of this problem, which incorporates data envelopment analysis into the location analysis. In the proposed problem, – in addition to minimising the spatial interaction among the facilities and the demand nodes – we aim at maximising the efficiency of the chosen p facilities. This view is in line with the centralised control mechanism which can often be seen in applications of the p-median problem: facilities are managed by a central authority who wishes to improve the efficiency of the whole system rather than maximising the individual efficiency of each facility. Real-world data from hospitals in Germany will be used to illustrate the proposed approach.
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