Decentralization: How to Disperse Offices from the Capital

Variables

Table 10.2 shows the variables that are used in this example.

Table 10.2: Variables

Variable Name

Interpretation

Assign[i,j]

1 if department i is assigned to city j; 0 otherwise

Product[i,j,k,l]

$\Variable{Assign[i,j]} \cdot \Variable{Assign[k,l]}$

TotalBenefit

Total yearly benefit of all relocations

TotalCost

Total yearly communication costs of all relocations