GIS can constructively support the decisions involving facility establishment through effective spatial analysis (Church 2002).
Terms (3) and (4) show facility establishment and production costs, respectively.
Consequently, we discuss that the spatial clustering algorithms can be modified to solve facility establishment problem effectively.
Various clustering algorithms have been studied and compared in the context of solving facility establishment problem (Zarnani et al. 2007).
The same objective (in the facility establishment problem) is faced when demand points and facilities are considered as spatial points and representative points, respectively.
In addition, embedding the objective functions for optimal facility establishment in partitioning methods is much less complicated compared to the other methods as will be shown.
To be more specific, the demand points are modeled in the geographic space along with other information such as the distances, candidate locations for facility establishment and regions with different location costs.
Most explanatory variables used were assessed at the time of investment decisions, and not at the time of facility establishment.
Additional criteria could include the institution of requisite civil programs for health care, education, and public services and facilities; and establishment of appropriate financial and legal systems.
The health care financing reform of Ethiopia states about the retention, utilization of revenues, and administration of fee waiver system and establishment of facility governance bodies.
