Location problem in the plane, Managerial Economics

Assignment Help:

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


Related Discussions:- Location problem in the plane

Point elasticity of demand, Calculate point elasticity of demand for demand...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Eating a certain amount, Jeremy is an economics learner who loves hamburger...

Jeremy is an economics learner who loves hamburgers. He could eat any number of them for dinner, but he gets a really bad stomach ache after eating a certain amount. In fact, his u

Disposable income, Disposable Income This is the income which househol...

Disposable Income This is the income which households actually have available to spend or to save.  To calculate disposal income, which is indicated by Ya, the statistician mu

Supply and demand, Discuss some of the effects of the economic downturn on ...

Discuss some of the effects of the economic downturn on supply, demand, inferior goods, complimentary goods, substitute goods, and price. words accepted#

Time factor for determinants of demand, Q. Time Factor for Determinants of ...

Q. Time Factor for Determinants of Demand? Price-elasticity of demand depends moreover on the time that consumers take to adjust to a new price: longer the time taken, greater

Concept of isocost, The concept of isocost In the use of resources, fi...

The concept of isocost In the use of resources, firms are faced with opportunity cost.  For every addition of say capital, they must forego a unit of say labour. Expositio

Determine the studies of managerial economics, Determine the studies of Man...

Determine the studies of Managerial economics Managerial economics studies the application of techniques, principles as well as concepts of economics to managerial problems of

Discounting principle, Using the discounting principle calculate the presen...

Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next five years at 10% interest. stion..

A chemical producer dumps toxic waste into a river, A chemical producer dum...

A chemical producer dumps toxic waste into a river. The waste decreases the population of fish, decreasing profits for the local fishing industry by $100,000 per year. The firm cou

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd