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Facility location problem

Facility location

Facility location, also known as location analysis, is a branch of operations research concerning itself with mathematical modeling and solution of problems concerning the placement of facilities in order to minimize transportation costs, avoid placing hazardous materials near housing, outperform competitors' facilities, etc.

A simple facility location problem is the Fermat-Weber problem, in which a single facility is to be placed, with the only optimization criterion being the minimization of the sum of distances from a given set of point sites. More complex problems considered in this discipline include the placement of multiple facilities, constraints on the locations of facilities, and more complex optimization criteria.

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