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

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. S ears, Roebuck and Company began with an enterprise established in 1886 and was incorporated under the laws of New York in 1906. Sears and its consolidated subsidiaries conduct domestic and international merchandising and credit operations. The company, a multiline retailer , is among the largest retailers in the world selling merchandise and services. US domestic operations include merchan