location analysis models
Location analysis models are tools used to determine the optimal placement of facilities, services, or resources. These models consider various factors such as customer demand, transportation costs, and competition to identify the best locations for businesses or services. By analyzing geographic data, companies can make informed decisions that enhance efficiency and profitability.
Common types of location analysis models include the gravity model, which predicts customer attraction based on distance and size, and the center of gravity model, which seeks to minimize transportation costs. These models help businesses strategically position themselves in relation to their target market and operational needs.