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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/1766 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/1766 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/1766 archive 351 disk0/00/00/17/33 2016-01-15 01:50:16 2021-08-27 17:10:28 2016-01-15 01:50:16 monograph show 2 Leonardi G. AL0927 pub iis_met iis_mod prog_hss The most important part of a location-allocation model is the allocation rule, that is, the way clients are assigned to facilities. In the well-known models of the "plant-location" family, the embedded allocation rule is the assignment of the least-travel-cost facility, This allocation rule depends on the assumption that the cost, or more generally utility, associated with each possible facility choice is deterministically known. The simplest way to generalize a plant-location model is to add a random term to travel costs, with a known probability distribution. Such randomness may be shown to arise in many real-life situations, and the resulting choice models constitute the subject of random-utility theory, This paper introduces the use of the random-utility modeling philosophy in location-allocation problems, Some relevant properties of the resulting family of models are derived, Among them, of special importance is the submodularity property, which relates the random-utility-based location models to a recent area of research in combinatorial optimization. Submodularity is exploited to develop simple heuristic algorithms, and the effectiveness of the approach is supported with some numerical results. 1981-03 published WP-81-028 WP-81-028 2112 public working_paper IIASA, Laxenburg, Austria 46 FALSE info:eu-repo/semantics/book