A study on relationship between accuracy of population projection and optimal single facility location: A case study of Saitama City

Population projection is one of the most important types of information for local governments. However, local governments are often required to make decisions without enough predictive accuracy. The purpose of this paper is to reveal the relationship between predictive accuracy of demand and single facility location. By letting the weight of each demand point to be random variable, we explicitly introduce demand uncertainty and the predictive accuracy into facility location. First, we draw probabilistic density distribution of minisum point. Second, we find optimal facility locations decided by minimax decision criteria, which include minimax regret decision criterion, depend on predictive accuracy of weights.