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NTU Management Review Vol. 33 No. 3 Dec. 2023

Table 7 Estimated Flows and Ratios in Iteration 1 of the Example
facility j scale level k Budget z(y)=z' (y) Ratio(j,k|y)=Ratio' (j,k|y)

1 1 Enough 8 4
5
1 2 Enough 15 3
14

2 1 Enough 4 4
35
2 2 Enough 8 4
25

3 1 Enough 10 1

3 2 Enough 19 19
60

Table 8 Estimated Flows and Ratios in Iteration 2 of the Example

facility j scale level k Budget z(y)=z' (y) Ratio(j,k|y)=Ratio' (j,k|y)
1 1 Enough 18 4
5

1 2 Not – –

2 1 Enough 14 4
35

2 2 Enough 16 3
25

Table 9 Estimated Flows and Ratios in Iteration 3 of the Example
facility j scale level k Budget z (y) z' (y) Ratio(j,k|y) Ratio' (j,k|y)

2 1 Enough 22 25 4 1
35 5
2 2 Enough 24 27 3 9
25 50

At the end of the third iteration, for using GSAMFE algorithm, we add facility 2 with
scale level 1 into our construction plan since Ratio' (2,2|y) is the highest one. However,

we find that if we apply GSAMF algorithm, we will choose facility 2 with scale level 2
instead of scale level 1 since we use Ratio (j,k|y) instead of Ratio' (j,k|y).

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