Integrated Approach to Assignment, Scheduling and Routing Problems in a Sales Territory Business Plan

This paper considers a real life case study that determines the minimum number of sellers required to attend a set of customers located in a certain region taking into account the weekly schedule plan of the visits, as well as the optimal route. The problem is formulated as a combination of assignment, scheduling and routing problems. In the new formulation, case studies of small size subset of customers of the above type can be solved optimally. However, this subset of customers is not representative within the business plan of the company. To overcome this limitation, the problem is divided into three phases. A greedy algorithm is used in Phase I in order to identify a set of cost-effective feasible clusters of customers assigned to a seller. Phase II and III are then used to solve the problem of a weekly program for visiting the customers as well as to determine the route plan using MILP formulation. Several real life instances of different sizes have been solved demonstrating the efficiency of the proposed approach.