LOCATION ALLOCATION ANALYSIS
Put the Right Facility in the Right Place — and Serve Demand More Efficiently
Location Allocation Analysis is a powerful spatial decision-making method used to determine which facilities should serve which demand locations and, when multiple candidate sites are available, which facilities should be selected to create the most efficient network.
DynaCarto brings this traditionally complex GIS and optimization workflow directly to a mobile device.
Starting with little more than an Excel file and location information, organizations can evaluate customer demand, candidate facilities, accessibility, capacity, travel distance, and travel time—and transform these inputs into a clear, optimized allocation strategy.
What Is Location Allocation?
Most organizations face a fundamental geographic question:
“Are our facilities in the right places to serve our demand efficiently?”
A company may have hundreds or thousands of customers, patients, delivery points, stores, service requests, or other demand locations—and several possible facilities that could serve them.
Location Allocation Analysis evaluates the relationship between these two groups:
Demand Points
Customers, patients, stores, service requests, population centers, delivery points, or any other locations requiring service.
Facilities
Stores, warehouses, clinics, hospitals, depots, branches, service centers, emergency stations, distribution hubs, or candidate future locations.
The objective is to determine the most effective relationship between them.
In simple terms:
Which facilities should we use, and which demand points should each facility serve?
From Excel to an Optimized Network
One of DynaCarto’s strongest advantages is the simplicity of the workflow.
You do not need to build a traditional desktop GIS project before starting your analysis.
A typical workflow can begin with an Excel file containing information such as:
Demand Data
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ID
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Name
-
Address
-
Latitude / Longitude
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Demand value
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Customer volume
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Population
-
Sales volume
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Orders
-
Workload
Facility Data
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Facility ID
-
Facility name
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Address
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Latitude / Longitude
-
Capacity
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Candidate / Existing status
If coordinates are not available, address information can be converted into geographic locations using DynaCarto Smart AI Geocoding.
The workflow becomes:
Excel → Smart AI Geocoding → Map → Location Allocation → Optimized Network
All within a mobile spatial intelligence environment.
How Does DynaCarto Location Allocation Work?
1. Import Your Demand
Upload an Excel file containing customers, patients, deliveries, population points, stores, or any other type of demand.
Each demand point can represent the same level of importance or can carry a specific weight.
For example:
A customer with 100 monthly orders can represent more demand than a customer with 10 monthly orders.
This allows the analysis to consider not only where demand exists, but also how important each location is.
2. Add Existing or Candidate Facilities
Define the locations that may serve the demand.
These could include:
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existing stores
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potential new stores
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warehouses
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clinics
-
hospitals
-
service centers
-
sales offices
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emergency stations
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depots
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distribution centers
For expansion planning, you may have several candidate locations but only want to open a limited number.
For example:
2,000 demand points
10 candidate facilities
Select the best 4 facilities
Location Allocation evaluates the alternatives and determines which facility configuration performs best according to the selected objective.
Choose How Accessibility Should Be Measured
DynaCarto supports different ways of measuring the relationship between demand and facilities.
Straight-Line Distance
The fastest approach for high-level geographic analysis.
It measures direct geographic distance between demand and facilities.
Useful for:
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preliminary planning
-
regional analysis
-
fast scenario testing
-
situations where road-network information is not essential
Travel Distance
Instead of measuring a straight line, DynaCarto evaluates the actual distance through the road network.
A facility that appears geographically close may actually require a significantly longer road journey because of:
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rivers
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highways
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restricted crossings
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road layouts
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mountains
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bridges
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urban street networks
Travel Distance provides a more realistic operational perspective.
Travel Time
In many business situations, time matters more than kilometers.
Two facilities may be the same distance from a customer but require very different travel times because of the road network.
Travel Time analysis helps organizations evaluate accessibility based on how long a real journey is expected to take.
This is particularly valuable for:
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healthcare
-
emergency services
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field service
-
logistics
-
retail accessibility
-
customer service networks
Capacity-Aware Location Allocation
Not every facility can serve unlimited demand.
A warehouse may have a maximum throughput.
A clinic may only be able to serve a certain number of patients.
A service center may have limited technician capacity.
A distribution facility may have a fixed operational limit.
DynaCarto can incorporate facility capacity into Location Allocation scenarios.
Instead of simply assigning every demand point to the nearest facility, the analysis can take into account whether a facility has sufficient capacity to absorb the allocated demand.
This creates a much more realistic network-planning model.
Why Is This Different from Simply Finding the Nearest Facility?
Finding the nearest facility answers only one question:
“Which facility is closest?”
Location Allocation asks a much more valuable question:
“What combination of facilities and assignments produces the best overall network?”
The nearest facility may:
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already be overloaded
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have insufficient capacity
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provide poor road accessibility
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create an inefficient overall distribution
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not be one of the facilities selected for operation
Location Allocation evaluates the network as a whole, rather than making isolated point-by-point decisions.
What Can You Learn from the Result?
After the analysis, DynaCarto can visually show how demand has been allocated across the selected facilities.
Instead of thousands of disconnected points, the user sees an organized service network.
The analysis can help reveal:
Which facilities should operate
Identify the strongest facility configuration among multiple candidates.
Which demand belongs to each facility
Understand the geographic service responsibility of every selected facility.
How much demand each facility receives
Compare workload and allocated demand between facilities.
Where accessibility is poor
Identify demand locations that remain far from the available network.
Where capacity problems exist
Recognize facilities that may require additional resources or alternative allocation strategies.
Where a new facility may be required
Reveal geographic areas where the existing network cannot efficiently serve demand.
Example: Retail Network Expansion
Imagine a retail company with:
2,000 customer locations
and
10 candidate store locations
The company wants to open only 4 new stores.
Without spatial optimization, management might choose sites based on intuition, rent, local knowledge, or simple distance.
DynaCarto Location Allocation introduces a geographic and analytical perspective.
Step 1 — Import Customers
The company imports 2,000 customers from Excel.
Customer purchase volume can be used as demand weight.
Step 2 — Add Candidate Stores
Ten possible store locations are added.
Step 3 — Select the Objective
The company chooses:
Travel Time
and specifies that only:
4 of 10 candidate stores
should be selected.
Step 4 — Calculate Accessibility
DynaCarto evaluates the relationship between customers and candidate facilities.
Step 5 — Optimize the Network
The analysis determines which four facilities provide the strongest overall configuration and assigns customer demand to the appropriate locations.
Step 6 — Review the Result
Management can visually understand:
-
which stores should be selected
-
which customers belong to each store
-
how much demand each store serves
-
which areas remain poorly covered
What started as an Excel spreadsheet has become an actionable location strategy.
Where Is Location Allocation Used?
Retail & Store Networks
Determine where stores should be located and which customers each store should serve.
Use it to:
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evaluate new store locations
-
reduce overlapping store territories
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improve customer accessibility
-
identify underserved markets
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optimize branch networks
in, DynaCarto can assess how it fits into the entire geographic network.
Healthcare
Determine how patients or population demand should be served by:
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hospitals
-
clinics
-
diagnostic centers
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pharmacies
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healthcare facilities
Location Allocation can help improve accessibility while balancing demand across facilities.
Logistics & Distribution
Optimize relationships between:
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warehouses
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depots
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distribution centers
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customers
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delivery zones
Organizations can reduce unnecessary travel and build more efficient distribution networks.
Field Service Operations
Allocate customers or service requests to:
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technicians
-
service centers
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maintenance facilities
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operational regions
This can support better workload distribution and reduce excessive travel.
Emergency Services
Evaluate how demand should be served by:
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ambulance stations
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fire stations
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emergency response centers
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public safety facilities
Location Allocation can help identify areas where response coverage needs improvement.
Banking & Financial Services
Optimize networks of:
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bank branches
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ATMs
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service offices
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customer service points
Organizations can identify redundant locations and areas where new service points may be justified.
Telecommunications
Support decisions involving:
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service facilities
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infrastructure locations
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customer demand
-
network expansion
Location Allocation can help prioritize resources based on geographic demand.
Public Services
Governments and municipalities can evaluate locations for:
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schools
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health centers
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community facilities
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municipal services
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public offices
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emergency facilities
The analysis helps connect population demand with available public resources.
Real Estate & Site Selection
Investors and developers can compare alternative facility locations based on their ability to serve surrounding demand.
Instead of evaluating a location in isolation, DynaCarto can assess how it fits into the entire geographic network.
Location Allocation for Sales & Service Territories
Location Allocation can also support territory planning.
For example, an organization may have:
1,500 customers
and
8 regional service centers
The analysis can determine which customers should logically belong to each service center based on accessibility and demand.
This creates an analytical foundation for:
-
sales territories
-
service regions
-
delivery territories
-
operational responsibility areas
Business Benefits
Reduce Travel
Better allocation can reduce unnecessary travel between demand locations and facilities.
Improve Customer Accessibility
Serve customers from locations that provide better geographic access.
Balance Facility Workloads
Avoid situations where one facility is overwhelmed while another remains underutilized.
Reduce Operational Costs
More efficient geographic assignments can reduce:
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transportation cost
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service cost
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unnecessary facility overlap
-
operational inefficiencies
Improve Coverage
Identify demand that is currently poorly served and redesign the network accordingly.
Support Expansion Decisions
Evaluate candidate facilities before making expensive investment decisions.
Compare Alternative Scenarios
Test different combinations of:
-
facility locations
-
number of facilities
-
travel metrics
-
demand weights
-
facility capacities
before making a final decision.
Replace Assumptions with Evidence
Location decisions are often expensive and difficult to reverse.
DynaCarto allows organizations to support those decisions with measurable spatial intelligence rather than intuition alone.
Location Allocation + Other DynaCarto Analyses
Location Allocation becomes even more powerful when combined with other spatial analyses.
Cluster + Location Allocation
First identify natural demand concentrations.
Then determine which facilities should serve those clusters.
Proximity & Coverage + Location Allocation
Identify coverage gaps and then redesign facility assignments to improve the network.
Isochrone + Location Allocation
Evaluate realistic accessibility based on travel time or travel distance before allocating demand.
Suitability + Location Allocation
Use Suitability Analysis to discover promising new facility locations.
Then use Location Allocation to determine how those candidate facilities would perform within the complete network.
This creates a powerful workflow:
Demand → Best Location → Allocation → Optimized Network
From a Simple Excel File to Advanced Spatial Optimization
Traditionally, Location Allocation has been associated with specialist GIS software, complex models, desktop environments, and technical expertise.
DynaCarto simplifies that process.
Start with:
Your Excel Data
Add:
Your Locations
Choose:
Straight-Line Distance, Travel Distance, or Travel Time
Define:
Demand, Candidate Facilities, Capacity, and Number of Facilities
Then let spatial analysis transform your data into an optimized geographic network.
No complex GIS workflow. No desktop dependency. Spatial intelligence directly on your mobile device.
From Location Data to Better Network Decisions
Location Allocation is not simply about finding the closest facility.
It is about understanding how an entire network should operate.
DynaCarto helps organizations answer:
Where should we locate our facilities?
Which facilities should we choose?
Which customers should each facility serve?
Are our facilities overloaded?
Where are our coverage gaps?
Would another facility configuration perform better?
Where should we expand next?
Right Facility. Right Demand. Better Network.
DynaCarto Location Allocation transforms customer demand, facility locations, accessibility, and capacity into a clear spatial strategy.
From a simple Excel file to an optimized geographic network, organizations can evaluate scenarios, improve coverage, reduce operational inefficiencies, and make more confident location decisions—directly from a mobile device.
Import. Allocate. Optimize. Decide.