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Facility Location with Spatially Interactive Travel Behavior

Abstract

This paper sets out a spatially interactive facility location model that specifies client travel behavior according to a "gravity" formula. The well-known uncapacitated facility location model is a limiting case of this model. Analytical partial optimization yields a condensed formulation that can be solved by a nonlinear branch-and-bound approach. Computational results are presented for several problems having as many as 69 potential facility locations

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