Multiple Objectives in Facility Location: A Review

Abstract

Numerous models of location have been created in the past two decades in response to problems which have arisen in both the private and public sector. The models served up to three functions simultaneously: the siting of facilities, the assignment of people or goods to the facilities and the sizing of facilities. The abundance of modelling efforts stems from the multitude of possible ways to conceptualize the movements or flows and assignments which occur in each location problem setting. The large number of efforts also arises because of the mathematical challenges posed by the formulations which include the nefarious zero-one variables. To a very great extent, however, the numerous modelling efforts can be ascribed to different views of the objectives of location problems. Population travel burden, population coverage, number of facilities, transport costs, transport and facilities cost, profits, etc. have all been suggested as objectives for location problems. How does one reconcile these often divergent objectives to provide information in a rational manner for decision makers? The ability to tradeoff the levels of achievement of these objectives against one another, depicting at the same time the impact on decisions, is an important need.