A Model for National Development

Abstract
In this paper a mathematical model is presented for allocation of activities to zones or to resources at the national or regional level. The model is intended for use within the framework of the systems approach for engineering and economic planning. The model is basically a quadratic programming model and allocates activities to zones in space and time such that a merit function is maximized. The merit includes the benefits less costs of establishing and operating the activities in the zones plus the benefits less costs of interactions between activities along paths between zones. The activities may be the various industries, primary or secondary, water storage and utilization, power generation, transportation terminals and urban development. The interactions may comprise flows of people, goods, materials, services, information, pollution, and the extent to which one activity stimulates or counteracts another including economy of scale and scarce resource effects. The zones may be considered at a hierarchy of levels such as global, national, regional, subregional, urban and even particular project sites. The paths are the vehicular transportation networks, pipes and wire networks. The model has broad application to allocation problems including allocation of activities to zones, resources to activities, and elements to sets for the purpose of grouping and structuring decisions and information flows. It is currently being applied to the macro planning of an urban region (Melbourne), to industrial and building layouts, grouping of elements, and scheduling problems.

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