On λ-Cent-Dians and Generalized-Center for Network Design
Abstract
In this paper, we extend the classical notions of λ-cent-dian and generalized-center from Facility Location Theory to the more intricate domain of Network Design. Our focus is on the task of designing a sub-network within a given underlying network while adhering to a budget constraint. This subnetwork is intended to efficiently serve a collection of origin/destination pairs rather than individual points. The λ-cent-dian problem studies the balance between efficiency and equity. We investigate the properties of the λ-cent-dian and generalized-center solution networks under the lens of equity, efficiency, and Pareto-optimality. We provide a mathematical formulation for λ ≥ 0 and discuss the bilevel structure of this problem for λ > 1. Furthermore, we describe a procedure to obtain a complete parametrization of the Pareto-optimality set based on solving two mixed integer linear formulations by introducing the concept of maximum λ-cent-dian. We evaluate the quality of the different solution concepts using some inequality measures. Finally, for λ ∈ [0, 1], we study the implementation of a Benders decomposition method to solve it at scale.
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