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United Bank United Bank, a Bulgarian credit institute, has used the p-median model to determine the optimal position of two bank offices at Gabrovo. The

image text in transcribed United Bank United Bank, a Bulgarian credit institute, has used the p-median model to determine the optimal position of two bank offices at Gabrovo. The city area was divided into eight different districts (which form the set V2 ), whereas there are identified six different potential sites (forming the set V1 ) for the location of the bank offices. The six potential sites have identical facility fixed costs. The connection costs between the potential sites and the centroids of the eight districts are proportional to the corresponding kilometric distances, which are reported in Table 7 . Let yi,iV1, be the binary decision variable assuming value 1 if a bank office is located at site i,0 otherwise; xij,iV1,jV2, is the binary decision variable assuming value 1 if the bank office located at site i serves district j,0 otherwise. Table 7: Kilometric distances between the potential sites and the centroids of the eight districts of Gabrovo for the United Bank problem. Draw logistic network for United Bank. What type of location model you might use to find location-allocation decisions? Formulate the problem into Mathematical model (objective and constraints). Show how you find parameters if possible Use heuristic method discussed in class to find a solution to the

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