A Stochastic Planning System for Siting and Closing Public Service Facilities

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Abstract
In this report we describe a planning tool for siting (or closing) public facilities. The approach is based on an optimizing framework—the objective is to provide and plan services as effectively as possible—in which the demands for future services are taken as stochastic parameters. Two kinds of general errors (overage and underage) are included in the planning objectives, along with economic and other considerations. An interactive choice procedure is recommended. At each stage, the planner selects potential sites for opening and for possibly closing facilities. The planning system is then used to evaluate the various impacts of these choices, and to help suggest several courses of action. The methodology is demonstrated through an example—the Queens Borough public library system in New York City. The system takes advantage of the problem's special structure as a network graph, thus allowing computational efficiencies. Large-scale problems can be easily solved in this environment. The World Bank's General Algebraic Modeling System (GAMS) is used to define the basic model.

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