Demand Point Aggregation for Some Basic Location Models

Location problems occurring in urban or regional settings may involve many tens of thousands of “demand points,” usually individual residences. In modeling such problems it is common to aggregate demand points to obtain tractable models. We discuss aggregation approaches to a large class of location models, consider various aggregation error measures, and identify some effective measures. In particular, we focus on an upper bounding methodology for the error associated with aggregation. The chapter includes an example application.

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