Abstract
Facility location models and network design problem have been studied extensively in the field of applied mathematics and operations research. In this paper, we investigate the mathematical programming model that simultaneously optimizes facility location and the design of the transportation network, by combining flow-demand p-median problem and median path problem. The model yields the optimal combination of the numbers of local hubs and urban axes within the context of formulating urban master plan under the budget constraint. The balance between local hubs and urban axes may be influenced by the performance of axis, price of hubs and axes, and the weight of facility-based demand and flow demand. Detailed sensitivity analysis provides insight into the usefulness of the model for planning decisions.
