# The Global Location Allocation Problem

1058 WordsApr 27, 20165 Pages
Example 1. The first type of problem discussed was the global location allocation problem. These problems are often seen in large business and can be solved by combining AHP and GP. However, in this smaller example the decision maker is choosing where to send his sales associates. According to the AHP, the goal must first be set, then the criteria, then the alternative locations, as seen in Figure 2. Figure 2. Illustrates the AHP of example 1. After the initial hierarchy was created, as described earlier, to make the problem global and to add the goal programming, weights have to be added to the locations and the criteria as seen in Figure 3. Figure 3. Illustrates the initial AHP combined with GP and created into a global LAP. The…show more content…
The next type of LAP is capacitated problems. Capacitated problems can be solved with stochastic models such as DCP, CCP, and the Hybrid Intelligence Algorithm. This example is one generated by  which seeks to maximize the probability that the transportation cost doesn’t exceed \$2,300. In order to do this, the DCP model in Equation 14 was used. Equation 14 Where Pr is the probability and C(x,y|ω) is the transportation cost. The hybrid intelligence algorithm runs the problem 10,000 times with different environmental criteria. This was done 10 times and the percent error was calculated. These results are shown in Table 3 below. Table 3. Shows the Comparison of the Different Solutions of the Capacitated LAP. Since the percent error does not go above 2.3% and the probability of the transportation cost not exceeding the goal is always above 90%, we can say that it is a viable option to choose the current limits on the constraints (Pop_size, P_c,P_m,α). Also this indicates that the hybrid algorithm is an effective model to solve these capacitated LAPs. Example 3. The last type of LAP examined is large LAP’s. One common way to solve large problems is by two-opt switching, or H4 as discussed in . H4 uses two-opt switching to simultaneously switch the allocation of two locations to make the “path” more efficient. A simple example can be seen in GPS routes that UPS could use to deliver and pick up