The Aggregation Problem in Location‐Allocation

Location‐allocation solutions based on aggregate estimates of demand are subject to error because of a loss of locational information during aggregation. It is shown that any method to remove or reduce uncertainty must be solution‐specific and therefore impractical, for both median and center classes of problems. The significance of the error is illustrated by simulation of solutions to a number of artificial and real problems. It is suggested that aggregation problems be specifically addressed in applications of location‐allocation models, and possible methods are proposed. 1979 The Ohio State University