Min-max optimization and the radial approach to the public service system design with generalized utility

Abstract

The paper deals with the min-max public service system design, where the generalized utility is considered. In contrast to the formulations presented in theliterature, the generalized utility defined for a public service system assumes that the user’s utility comes generally from more than one located service center and the individual contributions from relevant centers are weighted by reduction coefficients depending on a center order. Given that commercial IP-solvers often fail due to enormous computational times or extreme memory demands when resolving this issue,we suggested and compared several approaches based on a bisection process with the purpose of developing an effective max-min approach to the public service system design with a generalized utility.