Projects / Where to build fire stations so every region is within 12 minutes

Where to build fire stations so every region is within 12 minutes

Course project, Michigan Ross MBA. Set-covering integer program in Excel Solver, checked by full enumeration in Python. Not client or employer work.

ExcelPython
SituationA city must give each of its six regions fire cover. It has six candidate sites for stations, each with a different cost.
ComplicationA station is useful to a region only if it gets there within 12 minutes, and three siting rules limit which sites can open together. To open all six sites costs $1.8M.
QuestionWhich sites must the city open to cover every region at the lowest cost?
AnswerTwo of six candidate sites are enough, for $700,000. One minute faster costs 64% more.

The cost depends on which sites open; the 12-minute limit decides how few are enough

  • Total cost of the stations$700,000 in the answer
    • Stations opened
      • Which sites openThe lever: six yes/no choices

        Can two stations cover all six regions?

        Yes. Sites 1 and 3 reach every region within 12 minutes.

      • Response-time limitThe limit: 12 minutes to each region

        What does one minute less cost?

        $450,000. An 11-minute limit needs three stations.

      • Siting rulesThe limit: three rules on which sites go together

        Do the rules change the answer?

        No. The plan without the rules is the same.

    • Cost of each station
      • Cost to open a siteFixed: $50,000 to $450,000 by site
      • Travel timesFixed: from each site to each region

Lever what the decision changes Limit what the answer must respect Fixed outside the decision

Lowest cost to cover all six regions

$700,000

sites 1 and 3, out of 64 possible plans

Longest response time

12 min

region 5, exactly at the limit

Cost of one minute less

+$450,000

an 11-minute limit needs three stations

Sites 1 and 3 together reach every region within 12 minutes

Travel time from each candidate site to each region, in minutes
Site 1Site 2Site 3Site 4Site 5Site 6
Region 13152171525
Region 211513161221
Region 321182191310
Region 4821204817
Region 51416121039
Region 6222391882
Cost to open$400,000$50,000$300,000$450,000$250,000$350,000

Site opened 8 the station that serves the region 12 inside the 12-minute limit

The 12-minute limit sits just above a cost step: 11 minutes costs 64% more

No plan covers all regions below 10 minutes. Each bar is the lowest-cost plan for that limit, with the three siting rules applied.

The model

Decision

Open or do not open each of the six candidate sites (six yes/no variables).

Objective

The lowest total cost to open the stations.

Constraints

Each region has at least one open station within the limit. Sites 1 and 6 are not opened together. Site 4 needs site 1. Sites 5 and 6 are opened together or not at all.

  • The three siting rules do not change the answer at 12 minutes. The plan without the rules is the same.
  • Region 5 is 12 minutes from site 3, so the plan has no spare time there. A limit of 11 minutes adds site 4 and $450,000.
  • A limit of 15 minutes lets sites 5 and 6 replace sites 1 and 3 and saves $100,000.