case study 3-3 reallocating bricks to sales representatives of pfizer turkey charles delort markus...

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Case Study 3-3Reallocating Bricks to Sales

Representatives of Pfizer Turkey

Charles DelortMarkus Hartikainen

Dorothy MillerJouni Pousi

Lisa ScholtenJun Zheng

Develop a general method for reallocatingbricks to SR within a territory

Avoid breakingSR-client relationships

Decrease SRworkload (WL) complaints

Increase SRtravel efficiency

Increase the work satisfaction and travel efficiency of sales representatives (SR)

Problem Structuring

Increase the work satisfaction and travel efficiency of sales representatives

Avoid breakingSR-client relationships

Decrease SRWL complaints

Increase SRtravel efficiency

Minimize SRWL imbalance

Minimize maximal differencefrom average workload

measured with brick index values

Increase the work satisfaction and travel efficiency of sales representatives

Avoid breakingSR-client relationships

Decrease SRWL complaints

Increase SRtravel efficiency

Minimize SRWL imbalance

Minimize maximal differencefrom average workload

measured with brick index values

Modeling assumptions

1.Brick index is constant within model2.Brick index updated periodically -> problem solved again3.WL does not depend on travel distance

Modeling assumptions

1.Brick index is constant within model2.Brick index updated periodically -> problem solved again3.WL does not depend on travel distance

Increase the work satisfaction and travel efficiency of sales representatives

Avoid breakingSR-client relationships

Decrease SRWL complaints

Increase SRtravel efficiency

Minimize SRtotal travel distance

Minimize sum ofdistances from office

to bricks allocated to SR

Increase the work satisfaction and travel efficiency of sales representatives

Avoid breakingSR-client relationships

Decrease SRWL complaints

Increase SRtravel efficiency

Minimize SRtotal travel distance

Minimize sum ofdistances from office

to bricks allocated to SR

Modeling assumptions

1.All travel originates and returns to the SR home office2.Only one brick visited per trip3.Each brick is visited by only one SR

Modeling assumptions

1.All travel originates and returns to the SR home office2.Only one brick visited per trip3.Each brick is visited by only one SR

Increase the work satisfaction and travel efficiency of sales representatives

Avoid breakingSR-client relationships

Decrease SRWL complaints

Increase SRtravel efficiency

Minimize overalldisruptions due tobrick reassignment

Minimize sum ofindex-weighted

disruptions

Increase the work satisfaction and travel efficiency of sales representatives

Avoid breakingSR-client relationships

Decrease SRWL complaints

Increase SRtravel efficiency

Minimize overalldisruptions due tobrick reassignment

Minimize sum ofindex-weighted

disruptions

Modeling assumptions

1.Total number of SR, bricks and territories is constant2.Home office location does not change3.Size/shape of brick/territory does not change

Modeling assumptions

1.Total number of SR, bricks and territories is constant2.Home office location does not change3.Size/shape of brick/territory does not change

Multi-Objective Optimization Problem

• No preference information obtain Pareto set• Multi-objective integer linear program– 3 objectives– 88 binary decision variables– 22 constraints– feasible solutions

1000

1000

1000

X

Bricks 1,2 and 22assigned to SR 4

Bricks 1,2 and 22assigned to SR 4

Bricks inrows

SR incolumns

1322 1076.14

Multi-Objective Integer Program

22

1

22

14,...,1

4

1

22

1

4

1

22

1 4

1max,1,min""

j jjijjijij

i jijij

i jij vxvvaxdx

Imbalance

• Decision variables• 1 if SR i allocated brick j, else 0

• Parameters• distance from office of SR i to brick j• 1 if SR i allocated brick j in initial allocation, else 0• index value of brick j

ijd

jv

ijx

ija

4

1

22,,1 allfor 1i

ij jx s.t.

Total traveldistance Disruption

Can be formulatedas a linear program!Can be formulated

as a linear program!

Augmented Epsilon Constraint Method

• Mixed Integer Linear Program• Epsilon variations schemes for computing the

whole Pareto set are hard for more than two objectives [e.g., Laumanns et al, 2006]– For this reason we compute Pareto optimal

solutions only for some meaningful values of maximum difference of workloads from mean

A subset of the Pareto set

Results

• Implementation– Octave with GLPK– C++ interface to CPLEX using Concert technology

• Initial allocation of bricks can be improved• Obtained Pareto set consisting of 191

solutions– MCDA methods applicable– Interactive Decision Maps used to obtain

interesting solutions [Lotov et al., 2010]

Pareto SetImbalance

http://www.rgdb.org/idm/start2.jsp [Lotov et al., 2010]

Candidate SolutionsImbalance

Indexvalue

Initial Solution+

Indexvalue

Compromise Solution 1+

(187.4100) (0.0000) (0.3377)

Indexvalue

Compromise Solution 2+

(187.4100) (0.0000) (0.3377)

Indexvalue

Compromise Solution 3+

(187.4100) (0.0000) (0.3377)

Engage Decision Maker

• Present candidate solutions to Merih Caner (Decision Maker)

• Explore different goals with feasibility set visualizations

• Narrow preferred alternative set with decision support software– E.g., MAVT using Spatial Decision Support

Software (SDSS) [Yatsalo et al. 2010]

MAVT – Equal Weights

MAVT – Travel Distance Less Important

References• Laumanns M., Thiele L., Zitzler E., ”An efficient, adaptive parameter

variation scheme for metaheuristics based on the epsilon-constraint method”, European Journal of Operational Research, 169(3), 2006

• Lotov A., Efremov R., Kistanov A., Zaitsev A., Visualization of Large Databases, Prototype WEB Application Server RGDB © 2007-2010. http://www.ccas.ru/mmes/mmeda/rgdb/index.htm. Accesssed July 7, 2010

• Yatsalo B., Didenko V., Gritsyuk S., Mirzeabasov O., Tkachuk A., Slipenkaya V., Babucki A., Vasilevskaya M., Shipilov D., Okhrimenko I., Pichugina I., Gobuzova O., Tolokolnikova N., Okhrimenko D., DECERNS SDSS © 2006-2009, http://www.decerns.com/. Accessed July 8, 2010

Additional Slides

Mathematical Formulation of The Augmented Epsilon Constraint Method

jiji j

ijiji j

ij vaxdx 1min4

1

22

1

4

1

22

1

4

1

22,,1 allfor 1i

ij jx

s.t.

22

1

22

1

4...,,1 allfor 4

1

j jjjij ivvx

22

1

22

1

4...,,1 allfor 4

1

jjij

jj ivxv

1

4

1

22

1

1

jiji j

ij vax With varying and , small positive constant decision variable

1 22

Indexvalue

Extreme Solution 1(187.4100) (0.0000) (0.3377)

Indexvalue

Extreme Solution 2(187.4100) (0.0000) (0.3377)

Indexvalue

Extreme Solution 3 (Initial)

Further Considerations

• Simultaneously minimize time and distance• Optimize travel routes• Include regional growth projections• Better understand brick index values• Initiate SR preferences/assignment satisfaction (survey)• Track SR complaint reduction filed with management• Allow flexibility in the number of SR per brick, bricks per

territories, and/or territories per country• Allow SR home office location to change

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