Abstract
Territory design deals with the discrete assignment of geographical units into territories with restrictions defined by planning criteria. We propose an exact solution method based on an integer programming model with the objective of minimizing a p-center dispersion measure. The solution approach is an iterative algorithm that uses different subproblems to validate if, for given values of the objective function of the original problem, it is possible to find feasible solutions with at most p territories. This change allows testing various candidate distance values as lower bounds on the optimal solution of the original problem. The aim is to improve these lower bounds at each iteration as we add the necessary constraints to reach a feasible solution. The proposed algorithm performs significantly faster than the best-known exact solution method for this model. Tests for both methodologies were done using a new set of instances with up to 300 nodes.
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