A Planar Location-Allocation Problem with Waiting Time Costs

We study a location-allocation problem where the social planner has to locate some new facilities minimizing the social costs, i.e. the fixed costs plus the waiting time costs, taking into account that the citizens are partitioned in the region according to minimizing the capacity acquisition costs plus the distribution costs in the service regions. In order to find the optimal location of the new facilities and the optimal partition of the consumers, we consider a two-stage optimization model. Theoretical and computational aspects of the location-allocation problem are discussed for a planar region and illustrated with examples.