A binomial model for the interaction effects of distance is used to obtain the probable demand for a facility located on a plane. Such demand expressed as a function of size, location, population profile and distribution on the plane, is shown (using arguments leading to the central limit theorem) to be normal. Optimization of expected cost criteria is then used to obtain optimal locations under uncertainty. Examples are resolved and the practical implications of the model suggested are drawn.
ASJC Scopus subject areas
- Computer Science(all)
- Modeling and Simulation
- Management Science and Operations Research
- Information Systems and Management