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Note that in computing the location of the 1-median we do not need to use the
distances. In fact, node D would be the 1-median of the tree for any arc distances for
the tree. To compute the objective function value, we clearly do need the distances.
The objective function value for the 1-median located at node D in Fig. 2.1 is 5,375.
Kariv and Hakimi ( 1979 )presentan O ( n 2 p 2 ) algorithm for the p -median problem
on a tree. Tamir ( 1996 ) improved the computation time and presented an O ( pn 2 )
algorithm for the problem of locating p facilities on a tree.
2.4
Model Formulation
In this section, we formulate the p -median problem. In addition to the notation
defined above, we define the following additional input:
p
the number of facilities to locate.
Finally, we define the following decision variables:
y i D 1 if a facility is located at candidate site i
0
otherwise
x ij
the fraction of the demand of customer j that is supplied from facility i .
With this notation, we can formulate the p -median problem as follows:
minimize X i2 I
X j2 J
d j c ij x ij
(2.1)
subject to X i2 I
x ij D 1 8 j 2
J
(2.2)
X i2 I
y i D p
(2.3)
x ij y i 0 8 i 2
I
I j 2
J
(2.4)
y i 2f 0;1 g 8 i 2
I
(2.5)
x ij 0 8 i 2
I
I j 2
J
:
(2.6)
The objective function ( 2.1 ) minimizes the demand-weighted total cost. Con-
straints ( 2.2 ) mean that all of the demand at demand site j must be satisfied.
Constraints ( 2.3 ) require exactly p facilities to be located. Constraints ( 2.4 ) state that
demand nodes can only be assigned to open facilities. Constraints ( 2.5 ) stipulate that
the location variables must be integer and binary. Finally, constraints ( 2.6 ) state that
the assignment variables must be non-negative.
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