Location problem in the plane, Managerial Economics

Location problem in the plane:

In Kent, the council to respond to the people and government needs, it decided to establish 3 community care homes. The towns are recorded with their corresponding x and y coordinates as well as their population, see Table 1.

(i)Use Excel to solve this location problem in the plane. (Hint: As the problem is not convex and not linear, you cannot use the Simplex but the other 2 approaches shown in Solver (Evolutionary approach and GRG Non Linear)). Also you may need to use several starting points as poor local minima may be found instead, Try both approaches before you finalise your decision and comment on the way you attempted it.

(ii) What do you expect the solution quality will be if you had to solve the discrete version of the problem using all the town locations as potential sites? Which weaknesses you may be faced with when implementing the optimal solution of (i) if it exists.

(iii) Now consider that any facility built cannot serve more than 350000 in total. Use the locations found in (i) and determine the new allocation (This is now a TP which can be solved using Simplex LP in solver). Express in % the extra cost incurred due to such a restriction.

TOWN/CITY

X

Y

POPULATION

Ashford

600985

142805

58,178

Broadstairs

639320

167760

24,370

Canterbury

614880

157830

42,249

Chatham

575785

167920

70,540

Dartford

554200

174325

50,000

Deal

637510

152745

29,248

Dover

631650

141835

39,078

Faversham

601530

161425

18,000

Folkestone

622765

135915

53,411

Gillingham

577350

168385

99,773

Gravesend

564730

174170

51,150

Herne Bay

617900

167945

31,000

Maidstone

576150

155705

75,000

Margate

635460

170580

58,465

Northfleet

562235

174310

13,590

Ramsgate

638365

165180

37,967

Rochester

574375

168475

25,000

Royal Tunbridge Wells

558360

139265

45,000

Sevenoaks

552375

155295

18,588

Sheerness

591955

174725

20,000

Sittingbourne

590740

163660

55,000

Tonbridge

559080

146600

31,600

Table 1: Coordinates and population of Kent Towns

Posted Date: 2/12/2013 12:30:09 AM | Location : United States







Related Discussions:- Location problem in the plane, Assignment Help, Ask Question on Location problem in the plane, Get Answer, Expert's Help, Location problem in the plane Discussions

Write discussion on Location problem in the plane
Your posts are moderated
Related Questions

Q. Construction of the causal model - regression analysis? The construction of an explanatory model is a crucial step in the regression analysis. It should be defined with refe

The Barcelona Football Club is considering the signing of a player of international fame. The problem is that the player has a reputation for having a weak knee. The probability th

a) A reduce in supply and an enhance in demand will cause the equilibrium:   b)  Which of the following is most likely to cause a reduce in the present demand for  some product X

The Budget line and its economic interpretation The indifference curve shows us consumer preferences but it does not show us the situation in the market place.  Here the consu

Explain important terms of marginal productivity and wage inequality Marginal Productivity and Wage Inequality: a. Market power • Compensating Differentials • Dang

Q. What do mean by Convex Isoquant? Isoquants are convex to the origin: At any point of an isoquant,the slope is negative. Its numerical value measures the marginal rate of te

How does economic theory contribute to managerial decisions?

Joe is evaluating the marketing strategy at his restaurant and inn. Suppose that in response to a $2.00 off sales promotion for spaghetti dinners, Joe finds that nightly dinner sal