A Holistic Metric Approach to Solving the Dynamic Location-Allocation Problem

Abstract

In this paper, we introduce a dynamic variant of the Location-Allocation problem: Dynamic Location-Allocation Problem (DULAP). DULAP involves the location of facilities to service a set of customer demands over a defined horizon. To evaluate a solution to DULAP, we propose two holistic metric approaches: Static and Dynamic Approach. In the static approach, a solution is evaluated with the assumption that customer locations and demand remain constant over a defined horizon. In the dynamic approach, the assumption is made that customer demand, and demographic pattern may change over the defined horizon. We introduce a stochastic model to simulate customer population and distribution over time. We use a Genetic Algorithm and Population-Based Incremental Learning algorithm used in previous work to find robust and satisfactory solutions to DULAP. Results show the dynamic approach of evaluating a solution finds good and robust solutions.