Aggregation effects in maximum covering models

The level of aggregation is critical in discrete location analyses as it affects the level of data collection required, computation times and the usefulness of the analyses. We examine the effects of three alternative nodal aggregation schemes on (i) the model's solution times, (ii) the locational decisions indicated by the maximum covering model, (iii) the coverage provided by the aggregate solutions compared with the optimal solutions, and (iv) the coverage predicted by the aggregate model compared with the coverage that results from using the aggregate model's facility sites and the disaggregate demands. The results suggest that considerable aggregation can be tolerated without incurring large errors in total coverage, but that location errors are introduced at moderate levels of aggregation. The magnitude of these errors is significantly affected by the aggregation scheme employed.