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Applying GIS and OR Techniques to Solve Sears Technician-Dispatching and Home Delivery Problems

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  • Don Weigel

    (Transportation/Logistics Services ESRI, Inc., 380 New York Street, Redlands, California 92373)

  • Buyang Cao

    (Transportation/Logistics Services ESRI, Inc., 380 New York Street, Redlands, California 92373)

Abstract

Sears, Roebuck and Company uses a vehicle-routing-and-scheduling system based on a geographic information system to run its delivery and home service fleets more efficiently. Although the problems to be solved can be modeled as vehicle-routing problems with time windows (VRPTW), the size of the problems and thus practical complexity make these problems of both theoretical and practical interest. We constructed a series of algorithms, including the algorithm to build the origin-and-destination matrix, the algorithm to assign resources, and algorithms to perform sequencing and route improvement. The combination of GIS and OR techniques makes the system quite efficient. The system has improved the Sears technician-dispatching and home-delivery business; resulting in over $9 million in one-time savings and over $42 million in annual savings. The success of this application also suggests a promising link between GIS and OR techniques.

Suggested Citation

  • Don Weigel & Buyang Cao, 1999. "Applying GIS and OR Techniques to Solve Sears Technician-Dispatching and Home Delivery Problems," Interfaces, INFORMS, vol. 29(1), pages 112-130, February.
    • Handle: RePEc:inm:orinte:v:29:y:1999:i:1:p:112-130
    DOI: 10.1287/inte.29.1.112
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    References listed on IDEAS

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    1. Martin Desrochers & Jacques Desrosiers & Marius Solomon, 1992. "A New Optimization Algorithm for the Vehicle Routing Problem with Time Windows," Operations Research, INFORMS, vol. 40(2), pages 342-354, April.
    2. Marius M. Solomon, 1987. "Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints," Operations Research, INFORMS, vol. 35(2), pages 254-265, April.
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    1. Gayialis, Sotiris P. & Tatsiopoulos, Ilias P., 2004. "Design of an IT-driven decision support system for vehicle routing and scheduling," European Journal of Operational Research, Elsevier, vol. 152(2), pages 382-398, January.
    2. Peter C. Bell & Chris K. Anderson & Stephen P. Kaiser, 2003. "Strategic Operations Research and the Edelman Prize Finalist Applications 1989--1998," Operations Research, INFORMS, vol. 51(1), pages 17-31, February.
    3. Agatz, Niels A.H. & Fleischmann, Moritz & van Nunen, Jo A.E.E., 2008. "E-fulfillment and multi-channel distribution - A review," European Journal of Operational Research, Elsevier, vol. 187(2), pages 339-356, June.
    4. Prasertsri, Peerapon & Kilmer, Richard L., 2003. "Improving Vertical Coordination From Farm-To-Plant Using A Cooperative," 2003 Annual meeting, July 27-30, Montreal, Canada 22181, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Cavada, Juan P. & Cortés, Cristián E. & Goic, Marcel & Weintraub, Andrés & Zambrano, Juan I., 2020. "Accounting for cost heterogeneity on the demand in the context of a technician dispatching problem," European Journal of Operational Research, Elsevier, vol. 287(3), pages 820-831.
    6. Peter C. Bell & Chris K. Anderson, 2002. "In Search of Strategic Operations Research/Management Science," Interfaces, INFORMS, vol. 32(2), pages 28-40, April.
    7. Prasertsri, Peerapon & Kilmer, Richard L., 2004. "Scheduling and Routing Milk from Farm to Processors by a Cooperative," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 22(2), pages 1-14.
    8. Nicolas Rincon-Garcia & Ben J. Waterson & Tom J. Cherrett, 2018. "Requirements from vehicle routing software: perspectives from literature, developers and the freight industry," Transport Reviews, Taylor & Francis Journals, vol. 38(1), pages 117-138, January.
    9. Repoussis, P.P. & Paraskevopoulos, D.C. & Zobolas, G. & Tarantilis, C.D. & Ioannou, G., 2009. "A web-based decision support system for waste lube oils collection and recycling," European Journal of Operational Research, Elsevier, vol. 195(3), pages 676-700, June.
    10. Arthur M. Geoffrion & Ramayya Krishnan, 2001. "Prospects for Operations Research in the E-Business Era," Interfaces, INFORMS, vol. 31(2), pages 6-36, April.
    11. Helena Ramalhinho-Lourenço, 2005. "Teaching metaheuristics in business schools," Economics Working Papers 806, Department of Economics and Business, Universitat Pompeu Fabra.
    12. Paraskevopoulos, Dimitris C. & Laporte, Gilbert & Repoussis, Panagiotis P. & Tarantilis, Christos D., 2017. "Resource constrained routing and scheduling: Review and research prospects," European Journal of Operational Research, Elsevier, vol. 263(3), pages 737-754.
    13. Wooseung Jang & Huay H. Lim & Thomas J. Crowe & Gail Raskin & Thomas E. Perkins, 2006. "The Missouri Lottery Optimizes Its Scheduling and Routing to Improve Efficiency and Balance," Interfaces, INFORMS, vol. 36(4), pages 302-313, August.
    14. Cortés, Cristián E. & Gendreau, Michel & Rousseau, Louis Martin & Souyris, Sebastián & Weintraub, Andrés, 2014. "Branch-and-price and constraint programming for solving a real-life technician dispatching problem," European Journal of Operational Research, Elsevier, vol. 238(1), pages 300-312.
    15. Kim, Nayeon & Montreuil, Benoit & Klibi, Walid & Kholgade, Nitish, 2021. "Hyperconnected urban fulfillment and delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    16. Ines Mathlouthi & Michel Gendreau & Jean-Yves Potvin, 2021. "Branch-and-Price for a Multi-attribute Technician Routing and Scheduling Problem," SN Operations Research Forum, Springer, vol. 2(1), pages 1-35, March.
    17. De Boeck, Kim & Decouttere, Catherine & Jónasson, Jónas Oddur & Vandaele, Nico, 2022. "Vaccine supply chains in resource-limited settings: Mitigating the impact of rainy season disruptions," European Journal of Operational Research, Elsevier, vol. 301(1), pages 300-317.
    18. Helena Ramalhinho-Lourenço, 2001. "Supply chain management: An opportunity for metaheuristics," Economics Working Papers 538, Department of Economics and Business, Universitat Pompeu Fabra.

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