aggregate travel model
Oxford Dictionary of Geography:
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aggregate travel model
A method of estimating the total distances travelled in serving a market from a choice of locations. The model tries to find the point at which the distance covered is at a minimum, using the formula
where Ai is the aggregate distance travelled to serve the market from the factory site at i, Qj is the expected volume of sales in the market j, and Tij is either the distance between i and j or the transport cost between the two. Market size, Q, could be taken as proportional to per capita income, or to the volume of retail sales in the area.
The formula is applied to a number of competing locations, and the results may be used to map a cost surface—a contour map of the costs of serving a market.
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Oxford Dictionary of Geography
A Dictionary of Geography. Copyright © Susan Mayhew 1992, 1997, 2004. All rights reserved.
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