What is it about?
Districting decisions in a bottled beverage firm are greatly improved by introducing an MILP model and an ad-hoc solution approach. The problem consists of finding a partition of set of city blocks into a given number of p districts so as to minimize territory dispersion subject to many planning requirements such as territory connectivity, balancing with respect to product demand, workload and number of customers, and similarity with existing plan.
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Why is it important?
The proposed modeling framework and solution approach proved extremely helpful in reducing workload imbalances from 20-30% down to less than 5% in a very efficient manner.
Perspectives
This is a clear example on how appropriate OR tools can help commercial firms improving their operations significantly.
Prof Roger Z Ríos-Mercado
Universidad Autonoma de Nuevo Leon
Read the Original
This page is a summary of: Embotelladoras ARCA Uses Operations Research to Improve Territory Design Plans, INFORMS Journal on Applied Analytics, June 2013, INFORMS,
DOI: 10.1287/inte.1120.0675.
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