FACILITIES LOCATION MODEL TO MAXIMIZE THE SUM OF REALIZED DEMAND : Facilities location models based on spatial interaction models Part 1

Abstract

In this paper, facilities location model based on Spatial Interaction Models (SIM) is concerned. Initially outlines of SIM and location problem based on SIM are described. Secondly, a new model of SIM which is developed from Non-constraint type of SIM is proposed. In this model a new concept Maximum Realized Demand is applied. Next a location problem to maximize the sum of realized demand is proposed which is based on developed SIM. A method of solution based on Stochastic Descent Method and Stochastic Approximation Method is presented, and the effectiveness of presented method is confirmed through numerical analyses. Finally, 3 simulations of optimal location analyses are shown, and characteristics of presented location model are examined.