Combining Geographic Information Systems for Transportation and Mixed Integer Linear Programming in Facility Location-Allocation Problems

Abstract

In this study, we aimed to assess the solution quality for location-allocation problems from facilities generated by the software TransCAD®, a Geographic Information System for Transportation (GIS-T). Such facilities were obtained after using two routines together: Facility Location and Transportation Problem, when compared with optimal solutions from exact mathematical models, based on Mixed Integer Linear Programming (MILP), developed externally for the GIS. The models were applied to three simulations: the first one proposes opening factories and customer allocation in the state of São Paulo, Brazil; the second involves a wholesaler and a study of location and allocation of distribution centres for retail customers; and the third one involves the location of day-care centers and allocation of demand (0 - 3 years old children). The results showed that when considering facility capacity, the MILP optimising model presents results up to 37% better than the GIS and proposes different locations to open new facilities.