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Experiences with a Sales Districting Model: Criteria and Implementation

Author

Listed:
  • Sidney W. Hess

    (Management and Behavioral Science Center, University of Pennsylvania)

  • Stuart A. Samuels

    (Waruer-Chilcott Laboratories, Morris Plains, New Jersey)

Abstract

Previously reported research documented the analogue between sales districting and legislative apportionment and described the first applications of computer techniques to the redrawing of sales and service areas. This paper summarizes what we have learned from these seven applications. We emphasize --motivation for re-alignment: Better coverage, fairer work load and change in size of sales force, --criteria for measuring "good" districting: Single, multiple and weighted measures of salesman activity; relationship to sales objectives; and correlation between activity measures, --implementation: Top management involvement and presentation to the sales force, --demonstrated effectiveness of the new alignments.

Suggested Citation

  • Sidney W. Hess & Stuart A. Samuels, 1971. "Experiences with a Sales Districting Model: Criteria and Implementation," Management Science, INFORMS, vol. 18(4-Part-II), pages 41-54, December.
    • Handle: RePEc:inm:ormnsc:v:18:y:1971:i:4-part-ii:p:p41-p54
    DOI: 10.1287/mnsc.18.4.P41
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    Cited by:

    1. Yanık, Seda & Sürer, Özge & Öztayşi, Başar, 2016. "Designing sustainable energy regions using genetic algorithms and location-allocation approach," Energy, Elsevier, vol. 97(C), pages 161-172.
    2. Bernd Skiera & Sönke Albers, 1998. "COSTA: Contribution Optimizing Sales Territory Alignment," Marketing Science, INFORMS, vol. 17(3), pages 196-213.
    3. Skiera, Bernd & Albers, Sönke, 1993. "COSTA: ein Entscheidungs-Unterstützungs-System zur deckungsbeitragsmaximalen Einteilung von Verkaufsgebieten," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 324, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    4. Hyun Kim & Yongwan Chun & Kamyoung Kim, 2015. "Delimitation of Functional Regions Using a p-Regions Problem Approach," International Regional Science Review, , vol. 38(3), pages 235-263, July.
    5. Mourão, Maria Cândida & Nunes, Ana Catarina & Prins, Christian, 2009. "Heuristic methods for the sectoring arc routing problem," European Journal of Operational Research, Elsevier, vol. 196(3), pages 856-868, August.
    6. Juan Carlos Duque & Raúl Ramos & Jordi Suriñach, 2007. "Supervised Regionalization Methods: A Survey," International Regional Science Review, , vol. 30(3), pages 195-220, July.
    7. Brian Lunday & Hanif Sherali & Kevin Lunday, 2012. "The coastal seaspace patrol sector design and allocation problem," Computational Management Science, Springer, vol. 9(4), pages 483-514, November.
    8. Alexander Butsch & Jörg Kalcsics & Gilbert Laporte, 2014. "Districting for Arc Routing," INFORMS Journal on Computing, INFORMS, vol. 26(4), pages 809-824, November.
    9. Drexl, Andreas & Haase, Knut, 1996. "Fast approximation methods for sales force deployment," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 411, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    10. Han, Jialin & Hu, Yaoguang & Mao, Mingsong & Wan, Shuping, 2020. "A multi-objective districting problem applied to agricultural machinery maintenance service network," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1120-1130.
    11. Sebastián Moreno & Jordi Pereira & Wilfredo Yushimito, 2020. "A hybrid K-means and integer programming method for commercial territory design: a case study in meat distribution," Annals of Operations Research, Springer, vol. 286(1), pages 87-117, March.
    12. Rui Fragoso & Conceição Rego & Vladimir Bushenkov, 2016. "Clustering of Territorial Areas: A Multi-Criteria Districting Problem," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 179-198, December.
    13. Andreas Klein, 2011. "Die Entwicklung eines agentenbasierten Basismodells zur Bestimmung der deckungsbeitragsmaximierenden Anzahl von Außendienstmitarbeitern," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 21(2), pages 189-210, January.
    14. Maria da Conceição Rego & Rui Fragoso & Vladimir Bushenkov, 2014. "Clustering of Territorial Areas: A Multi-Criteria Districting Problem," ERSA conference papers ersa14p218, European Regional Science Association.
    15. Johannes Habel & Sascha Alavi & Nicolas Heinitz, 2023. "A theory of predictive sales analytics adoption," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 34-54, June.
    16. F Caro & T Shirabe & M Guignard & A Weintraub, 2004. "School redistricting: embedding GIS tools with integer programming," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 836-849, August.
    17. Meiyan Lin & Kwai Sang Chin & Lijun Ma & Kwok Leung Tsui, 2020. "A comprehensive multi-objective mixed integer nonlinear programming model for an integrated elderly care service districting problem," Annals of Operations Research, Springer, vol. 291(1), pages 499-529, August.
    18. Andris A. Zoltners & Prabhakant Sinha, 2005. "The 2004 ISMS Practice Prize Winner—Sales Territory Design: Thirty Years of Modeling and Implementation," Marketing Science, INFORMS, vol. 24(3), pages 313-331, September.
    19. Fernando Tavares-Pereira & José Figueira & Vincent Mousseau & Bernard Roy, 2007. "Multiple criteria districting problems," Annals of Operations Research, Springer, vol. 154(1), pages 69-92, October.
    20. Tavares Pereira, Fernando & Figueira, José Rui & Mousseau, Vincent & Roy, Bernard, 2009. "Comparing two territory partitions in districting problems: Indices and practical issues," Socio-Economic Planning Sciences, Elsevier, vol. 43(1), pages 72-88, March.
    21. María Salazar-Aguilar & Roger Ríos-Mercado & Mauricio Cabrera-Ríos, 2011. "New Models for Commercial Territory Design," Networks and Spatial Economics, Springer, vol. 11(3), pages 487-507, September.

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