Analytical clarifications and an easy excel-based implementation of a basic location model in Operations Management

Abstract

This paper clarifies some important issues related to a basic location model that is covered is most Operations Management courses. We show that the Euclidean mini-sum single facility location problem is structurally similar in terms of its convexity properties to its squared Euclidean counterpart and although a closed-form solution may not be readily available for the former it may be easily solved using standard spreadsheet-based software. We provide alternate representations of the solution methodology, including graphical aids which make it easy to contrast the similarities and differences in the solutions to the Euclidean model vs. it's squared Euclidean counterpart. We also make available an interactive demonstration that can be readily used in the classroom to highlight the similarities and differences between the Euclidean and squared Euclidean solutions.