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How to run Location Allocation in ArcGIS

Tutorial on how to use the Location Allocation tool from the TravelTime toolbox.

Location Allocation chooses which candidate sites to open and assigns demand to them, based on real travel times. Use it to decide where to open stores, depots, clinics or offices, or which ones to keep.

If you’ve used Esri’s location-allocation tool, this works the same way and covers the same seven problem types, with three differences:

  • Every transport mode, including public transport, using TravelTime travel times.

  • No network dataset to set up or maintain.

  • No ArcGIS credits used.

Location Allocation result: the chosen sites, with allocation lines to the demand points each one serves

What you need

  • Facilities: a point layer of the sites to choose from. These can be candidates, sites that must stay open, or competitors (set with the Facility Role Field; blank means candidate).

  • Demand Points: a point layer of where demand is, such as customers, population centroids or delivery stops. Use the Demand Weight Field for population, spend or another weight (blank counts each point as 1).

Run it

  1. Open Location Allocation from the Location Analytics toolset of the TravelTime toolbox.

  2. Choose your Facilities and Demand Points layers and their ID fields.

  3. Set the Travel Mode, whether journeys are departing or arriving, and the time. Departure means journeys leave the facilities for the demand points; arrival means they leave the demand points for the facilities.

  4. Set the Travel time (in minutes), up to 240. A demand point further than this from a facility can’t be served by it.

  5. Choose a Problem Type (below) and, if it uses one, how many Facilities To Choose. Inputs the problem type doesn’t use are greyed out.

  6. Run the tool.

The Location Allocation dialog with Facilities, Demand Points, travel settings and a Problem Type chosen

Problem types

Problem type

Use it to

Example

Minimize impedance (p-median)

Keep total travel time as low as possible

Where to put 5 depots so deliveries are quickest overall

Maximize coverage

Reach as much demand as possible within the travel time

Which 3 clinics put the most people within 30 minutes

Maximize capacitated coverage

As above, without any site going over its capacity

Schools with a fixed number of places

Maximize coverage, minimize facilities

Use the fewest sites to cover everything the candidates can

The fewest fire stations to cover an area

Maximize attendance

Get the most visits, when nearer people are more likely to come

Leisure centres or libraries

Maximize market share

Win the most demand against competitors

Where to open stores in a competitive market

Target market share

Use the fewest sites to reach a target share

The fewest stores needed for 40% of the market

The default is Minimize impedance. Market share problems use the Facility Attractiveness Field; capacitated coverage uses the Facility Capacity Field (or Default Capacity). Impedance Transformation controls how heavily longer journeys are penalised.

The results

The tool creates three outputs in your geodatabase:

  • Allocation lines: a straight line from each demand point to the facility serving it, with the travel time and weight allocated. These show the allocation, not the route taken.

  • Demand points: every demand point, with the facility it’s allocated to and allocated (1 if served, 0 if not).

  • Facility table: one row per chosen facility, with how many demand points it serves, the total weight and, for capacitated problems, how much of its capacity is used.

In market share problems, a demand point can be split between several facilities. The lines show the full split, and the demand point layer shows the facility with the largest share.

Things to know

  • If the travel time search for any facility fails, the whole run stops, even with Robust Mode on. Check every facility is on land that can be reached.

  • The tool works out the best answer it can by testing swaps between sites, so it isn’t guaranteed to find the single best solution. The same inputs always give the same result. Full details of the optimisation can be found in the Solver overview.

  • The tool has no search range, because it needs exactly one travel time for each facility and demand point.

Full parameter details are in the Location Allocation docs.

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