Dynamic Location-Allocation Systems: Some Basic Planning Strategies

The general location-allocation problem is defined. Then various generalizations of the problem are indicated. The dynamic extension of the location-allocation problem is shown to be of especial interest and significance. Two major approaches to the formulation and analysis of this dynamic problem are discussed. The first approach makes no attempt to anticipate future events and thus leads over the long-run to sub-optimal solutions. The second approach attempts fully to anticipate the future, and is formalized as a dynamic program. This second approach guarantees full optimality over the range of definition of the problem. Some numerical examples are presented.