Aggregation Error Bounds for a Class of Location Models

R. L. Francis (), T. J. Lowe () and Arie Tamir ()
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R. L. Francis: Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida 32611
T. J. Lowe: College of Business Administration, University of Iowa, Iowa City, Iowa 52242
Arie Tamir: Department of Statistics & Operations Research, School of Mathematical Sciences, Tel-Aviv University, Tel-Aviv 69978, Israel

Operations Research, 2000, vol. 48, issue 2, 294-307

Abstract: Many location models involve distances and demand points in their objective function. In urban contexts, there can be millions of demand points. This leads to demand point aggregation, which produces error. We identify a general model structure that includes most such location models, and present a means of obtaining error bounds for all models with this structure. The error bounds suggest how to do the demand point aggregation so as to keep the error small.

Keywords: Facilities; Location:; demand; point; aggregation; error (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (16)

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