Aggregation error bounds for a class of location models

Aggregation error bounds for a class of location models

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Article ID: iaor20011620
Country: United States
Volume: 48
Issue: 2
Start Page Number: 294
End Page Number: 307
Publication Date: Mar 2000
Journal: Operations Research
Authors: , ,
Keywords: location
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.

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