Mathematical programming model proposal to solve a real-life public sector facility location problem (Q2627685)

Summary: The topic of this study is a real life facility location problem in the public sector. A public institution currently has 24 service facilities in a region. There are 55 candidate districts to open a facility in the region. A district that has not a facility receives service from another facility in that region. General management desire to reduce the number of facilities because the existing system no longer provides a cost-effective service. However, opening of new facilities are also considered in case the current facilities fail to fulfil general management's demands. A mathematical programming model is introduced to determine where the facilities will be located, and which districts receives service from which facilities as if there are currently no existing facilities. The solution of the mathematical model shows implicitly which of the existing facilities should be closed and in which districts the new facilities should be opened.