A Multi-Stage Optimization Model for the Location Selection and Expansion of National and Public Daycare Centers

This study addresses the issue of low birth rates by optimizing the location selection and phased expansion of national and public daycare centers. As government budgets for daycare center expansion decline while parental benefit allocations increase, this study proposes reallocating a portion of the latter to support daycare expansion.<br/>A two-stage mixed-integer linear programming model is developed for phased expansion from 2024 to 2027. The first stage aims to maximize demand coverage, while the second stage minimizes travel distance while meeting demand. This optimization approach enhances cost efficiency and improves accessibility, while ensuring effective demand fulfillment through strategic daycare center expansion. Additionally, the study provides Pareto optimal solutions and a web-based decision support system to assist policymakers in budget allocation based on policy priorities. It is anticipated that the results will contribute to improving daycare center supply chain management and providing solutions to mitigate the challenges of declining birth rates.