Dynamic facility location: The progressive p-median problem

Abstract A dynamic p-median problem is considered. Demand is changing over a given time horizon and the facilities are built one at a time at given times. Once a new facility is built, some of the customers will use its services and some of the customers will patronize an existing facility. At any given time, customers patronize the closest facility. The problem is to find the best locations for the new facilities. The problem is formulated and the two facilities case is solved by a special algorithm. The general problem is solved using the standard mathematical programming code AMPL.