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The Missouri Lottery Optimizes Its Scheduling and Routing to Improve Efficiency and Balance

Author

Listed:
  • Wooseung Jang

    (Department of Industrial and Manufacturing Systems Engineering, University of Missouri--Columbia, Columbia, Missouri 65211)

  • Huay H. Lim

    (Department of Industrial and Manufacturing Systems Engineering, University of Missouri--Columbia, Columbia, Missouri 65211)

  • Thomas J. Crowe

    (Department of Industrial and Manufacturing Systems Engineering, University of Missouri--Columbia, Columbia, Missouri 65211)

  • Gail Raskin

    (The Missouri Lottery, 1823 Southridge Drive, Jefferson City, Missouri 65109)

  • Thomas E. Perkins

    (The Missouri Lottery, 1823 Southridge Drive, Jefferson City, Missouri 65109)

Abstract

The Missouri lottery, a profit-driven nonprofit organization, generates annual revenues of over $800 million by selling lottery tickets; 27.5 percent of the revenue goes to Missouri’s public education programs. The lottery sales representatives (LSRs) play a central role in increasing sales by providing excellent customer service to ticket retailers throughout the state. Hence, LSRs must have equitable, balanced work schedules and efficient routes and navigation sequences. Our objective was to provide scheduling and routing policies that minimize LSRs’ total travel distance while balancing their workloads and meeting visitation constraints. We modeled the problem as a periodic traveling-salesman problem and developed improvement algorithms specifically to solve this problem. The newly implemented schedules and routes decrease the LSRs’ travel distance by 15 percent, improve visitation feasibility by 46 percent, increase the balance of routes by 63 percent, decrease overtime days by 32 percent, and indirectly increase the sales of lottery tickets by improving customer service.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:orinte:v:36:y:2006:i:4:p:302-313
    DOI: 10.1287/inte.1060.0204
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    References listed on IDEAS

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    3. Rodríguez-Martín, Inmaculada & Salazar-González, Juan-José & Yaman, Hande, 2019. "The periodic vehicle routing problem with driver consistency," European Journal of Operational Research, Elsevier, vol. 273(2), pages 575-584.
    4. Rodríguez-Martín, Inmaculada & Yaman, Hande, 2022. "Periodic Vehicle Routing Problem with Driver Consistency and service time optimization," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 468-484.
    5. Chen, Yujie & Cowling, Peter & Polack, Fiona & Remde, Stephen & Mourdjis, Philip, 2017. "Dynamic optimisation of preventative and corrective maintenance schedules for a large scale urban drainage system," European Journal of Operational Research, Elsevier, vol. 257(2), pages 494-510.
    6. P. Matl & R. F. Hartl & T. Vidal, 2018. "Workload Equity in Vehicle Routing Problems: A Survey and Analysis," Transportation Science, INFORMS, vol. 52(2), pages 239-260, March.
    7. Jens Van Engeland & Jeroen Beliën, 2021. "Tactical waste collection: column generation and mixed integer programming based heuristics," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(1), pages 89-126, March.

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