Location-allocation Problem

The location-allocation problem involves determining the best positions for facilities (like stores or warehouses) to serve a set of demand points efficiently. The goal is to place these facilities so that the total travel distance or cost for users to reach them is minimized, while also allocating demand to the most suitable facility. It balances the cost of establishing facilities with the convenience for users, ensuring resources are used effectively and service levels are optimized. This problem is common in logistics, urban planning, and supply chain management to improve accessibility and operational efficiency.