Abstract
Distribution districting is the problem of partitioning a logistics service area into districts. A good districting plan is characterized by its properties of contiguity, compactness, and balance. Herein, a mixed integer program of the distribution districting problem is proposed. Compactness serves as the objective, since compact districts have greater operational routing flexibility. Balance of the estimated travel time per district is incorporated in the constraints of the model. Contiguity is modelled using a net flow formulation. The applicability is demonstrated at the case of in-night express at Kiessling Spedition. In express services, districting is of major importance since the feasibility and productivity of tours, bundling of shipments, daily routing efficiency, and satisfaction of customers and drivers are depending on a good districting plan. This paper contributes to the body of districting literature through a practical application of a quantitative model and thus bridges the gap between academic literature and practice.
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