Location/Allocation model
Location/Allocation models are mathematical models first developed in the 1960s that are used to identify the optimal location for public and facilities. Location/Allocation modeling involves the selection of multiple potential locations and matching them to a predetermined demand function in order to best identify which location out of all possible locations is most likely to produce the desired measurable outcome. Location/Allocation Modeling is becoming increasingly popular as public and private developers try to utilize increasingly advanced mathematical models to deal with contextual questions surrounding location decisions. Multiple criteria usually apply to any decisions that might be made in the process of achieving still more objectives. In recent years, Location/Allocation Modeling has become sophisticated enough to allow analysts to model multiple criteria and objectives, consumer behavior, environmental factors (e.g., landscape, travel costs, and distances), and information error due to uncertainty in any of these estimated decision model components. Finally, Location/Allocation Modeling is seeing increasing use by academics and analysts who wish to evaluate existing locational decisions in order to improve upon current decision making strategies (Hillsman, 1984).