Abstract:A facility has to be located within a given region taking two criteria of equity and efficiency into account. Equity is sought by minimizing the inequality in the inhabitant-facility distances, as measured by the sum of the absolute differences between all pairs of squared Euclidean distances from inhabitants to the facility. This measure meets the Pigou-Dalton condition of transfers, and can easily be minimized. Efficiency is measured through optimizing the sum of squared inhabitant-facility distances, either… Show more
“…Especially in essential public service facility location models, geographic equity of access to the service facilities is considered as one of the main requirements for an applicable solution. The access level can be measured in different terms such as the distance between demand points (customers) and the facilities (as in Batta et al, 2014;Maliszewski et al, 2012;Smith et al, 2013;Bell et al, 2011;Ohsawa et al, 2008;Chanta et al, 2011;Jia et al, 2007;Melachrinoudis & Xanthopulos, 2003;Ohsawa & Tamura, 2003;Mladenovic et al, 2003;López-de-los Mozos et al, 2013;Lejeune & Prasad, 2013) or the time required to access the facility from the demand points as in Mestre et al (2012) and Smith et al (2009). Ogryczak (2009) considers the generic location problem from a multicriteria perspective and formulates a model where each individual access level is minimized (see Table 2).…”
Section: Location Problemsmentioning
confidence: 99%
“…(5) Sum of pairwise (absolute) differences ( i∈I j∈J |y i − y j |): Sum of absolute differences between all pairs is considered in Ohsawa et al (2008), Al-Yakoob and Sherali (2006) and Lejeune and Prasad (2013) . Like the Gini coefficient and variance, this measure satisfies the PD.…”
Section: Inequality Index Based Approachesmentioning
a b s t r a c tThere are many applications across a broad range of business problem domains in which equity is a concern and many well-known operational research (OR) problems such as knapsack, scheduling or assignment problems have been considered from an equity perspective. This shows that equity is both a technically interesting concept and a substantial practical concern. In this paper we review the operational research literature on inequity averse optimization. We focus on the cases where there is a tradeoff between efficiency and equity.We discuss two equity related concerns, namely equitability and balance. Equitability concerns are distinguished from balance concerns depending on whether an underlying anonymity assumption holds. From a modeling point of view, we classify three main approaches to handle equitability concerns: the first approach is based on a Rawlsian principle. The second approach uses an explicit inequality index in the mathematical model. The third approach uses equitable aggregation functions that can represent the DM's preferences, which take into account both efficiency and equity concerns. We also discuss the two main approaches to handle balance: the first approach is based on imbalance indicators, which measure deviation from a reference balanced solution. The second approach is based on scaling the distributions such that balance concerns turn into equitability concerns in the resulting distributions and then one of the approaches to handle equitability concerns can be applied.We briefly describe these approaches and provide a discussion of their advantages and disadvantages. We discuss future research directions focussing on decision support and robustness.
“…Especially in essential public service facility location models, geographic equity of access to the service facilities is considered as one of the main requirements for an applicable solution. The access level can be measured in different terms such as the distance between demand points (customers) and the facilities (as in Batta et al, 2014;Maliszewski et al, 2012;Smith et al, 2013;Bell et al, 2011;Ohsawa et al, 2008;Chanta et al, 2011;Jia et al, 2007;Melachrinoudis & Xanthopulos, 2003;Ohsawa & Tamura, 2003;Mladenovic et al, 2003;López-de-los Mozos et al, 2013;Lejeune & Prasad, 2013) or the time required to access the facility from the demand points as in Mestre et al (2012) and Smith et al (2009). Ogryczak (2009) considers the generic location problem from a multicriteria perspective and formulates a model where each individual access level is minimized (see Table 2).…”
Section: Location Problemsmentioning
confidence: 99%
“…(5) Sum of pairwise (absolute) differences ( i∈I j∈J |y i − y j |): Sum of absolute differences between all pairs is considered in Ohsawa et al (2008), Al-Yakoob and Sherali (2006) and Lejeune and Prasad (2013) . Like the Gini coefficient and variance, this measure satisfies the PD.…”
Section: Inequality Index Based Approachesmentioning
a b s t r a c tThere are many applications across a broad range of business problem domains in which equity is a concern and many well-known operational research (OR) problems such as knapsack, scheduling or assignment problems have been considered from an equity perspective. This shows that equity is both a technically interesting concept and a substantial practical concern. In this paper we review the operational research literature on inequity averse optimization. We focus on the cases where there is a tradeoff between efficiency and equity.We discuss two equity related concerns, namely equitability and balance. Equitability concerns are distinguished from balance concerns depending on whether an underlying anonymity assumption holds. From a modeling point of view, we classify three main approaches to handle equitability concerns: the first approach is based on a Rawlsian principle. The second approach uses an explicit inequality index in the mathematical model. The third approach uses equitable aggregation functions that can represent the DM's preferences, which take into account both efficiency and equity concerns. We also discuss the two main approaches to handle balance: the first approach is based on imbalance indicators, which measure deviation from a reference balanced solution. The second approach is based on scaling the distributions such that balance concerns turn into equitability concerns in the resulting distributions and then one of the approaches to handle equitability concerns can be applied.We briefly describe these approaches and provide a discussion of their advantages and disadvantages. We discuss future research directions focussing on decision support and robustness.
“…Moreover, bicriteria models that have studied effectiveness-equity tradeoffs have either considered discrete location contexts [26] or used equity measures that do not satisfy the Principle of Transfers [18]. Location models have employed other equity measures that do satisfy the Principle of Transfers [36] but not necessarily in the context of examining tradeoffs with efficiency-one exception is the work of Ohsawa et al [33] who studied a bicriteria model for locations in a plane. Our proposed models extend this line of analysis when location is restricted to tree networks.…”
We propose models to investigate effectiveness-equity tradeoffs in tree network facility location problems. We use the commonly used median objective as a measure of effectiveness, and the Gini index as a measure of (in)equity, and formulate bicriteria problems involving these objectives. We develop procedures to identify an efficient set of solutions to these problems, analyze the complexity of the proposed procedures, and finally illustrate the procedures with an example.
“…Hansen and Thisse (1981) propose a solution strategy for the bicriteria WeberRawls problem, and Hamacher and Nickel (1996) consider planar location problems where the objective functions are either Weber or center problems. Today, a wide range of multicriteria location problems with different objectives are reported, see, for example, Nickel et al (1997), Juel (1998a, 1998b), Melachrinoudis and Xanthopulos (2003), Blanquero and Carrizosa (2002), Skriver and Anderson (2003), Ohsawa (2000), Ohsawa and Tamura (2003), Ohsawa et al (2006Ohsawa et al ( , 2008. See Carrizosa and Plastria (1999) for a survey about semi-obnoxious facility location problems.…”
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