On Optimal Location with Threshold Requirements

25 Pages Posted: 25 Mar 1998

See all articles by Miguel Carreras

Miguel Carreras

University of Girona

Daniel Serra

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Date Written: March 17, 1997

Abstract

The optimal location of services is one of the most important factors that affects service quality in terms of consumer access. On the other hand, services in general need to have a minimum catchment area so as to be efficient. In this paper a model is presented that locates the maximum number of services that can coexist in a given region without having losses, taking into account that they need a minimum catchment area to exist. The objective is to minimize average distance to the population. The formulation presented belongs to the class of discrete P-median-like models. A tabu heuristic method is presented to solve the problem. Finally, the model is applied to the location of pharmacies in a rural region of Spain.

JEL Classification: C61, R12, R53

Suggested Citation

Carreras, Miguel and Serra, Daniel, On Optimal Location with Threshold Requirements (March 17, 1997). Available at SSRN: https://ssrn.com/abstract=54880 or http://dx.doi.org/10.2139/ssrn.54880

Miguel Carreras

University of Girona ( email )

Girona, 17071
Spain

Daniel Serra (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34) 93 542 16 66 (Phone)
(34) 93 542 17 46 (Fax)

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