Decision support for siting problems

Abstract

Despite the development of mathematics of location theory and its obvious economic impact, few applications have been developed and are actually in use to support decision makers in siting decisions. The obstacles that hinder a more widespread exploitation of mathematical results are twofold: the intrinsic difficulties of the relevant problems and the tradeoff to be balanced between the different objectives. The article presents the results obtained in the implementation of a Decision Support system applied to the problem of locating installations for industrial waste management. This DSS is based on multicriteria decision analysis for the best siting of plants, minimizing costs and environmental impacts. The proposed approach identifies a hierarchy of objectives, where at the top level we solve a 0/1 fixed cost transportation problem (FCTP). This is an NP-hard combinatorial optimization problem that can only be solved heuristically for real world problem sizes. A number of good solutions of the single objective problem are combined to produce efficient alternatives, to be further evaluated by means of multicriteria methods. Computational results both of the FCTP and of the whole systems are provided. © 1998 Elsevier Science B.V. All rights reserved.