| Article ID: | iaor20081159 |
| Country: | United Kingdom |
| Volume: | 17 |
| Issue: | 4 |
| Start Page Number: | 359 |
| End Page Number: | 371 |
| Publication Date: | Oct 2006 |
| Journal: | IMA Journal of Management Mathematics (Print) |
| Authors: | Drezner Zvi, Scott Carlton |
| Keywords: | demand |
The location of a facility in the plane when service availability is a convex decreasing function of the distance (distance decay) is considered. The total cost of the system consists of three components: (i) the cost of waiting in line for service, (ii) the cost of providing the service and (iii) the cost of lost demand. A generalized Weiszfeld algorithm and a global optimization technique are constructed and tested on problems of up to 10000 demand points assuming exponential decay in service. Both algorithms are very efficient.