Globally Unique Approach to Sectorisation and Cost Allocation

This technical report presents a solution developed by EPG and the University of Bonn to address the sectorisation and cost allocation challenges in postal and parcel operations. The document outlines how Greenplan, EPG's software for route planning, utilizes advanced algorithms and mathematical models to optimize delivery routes and sectors. It describes the sectorisation problem faced by logistics companies with combined and separate delivery networks, emphasizing the need for efficient organization of delivery areas. The report details a five-step process for implementing the solution, including creating area groups, allocating fair parcel costs using the 'happy nucleolus' concept, defining parcel splits between networks, designing sectors and routes, and evaluating the results for performance improvements. The methodology aims to enhance delivery efficiency while balancing quality and cost, ultimately benefiting logistics operations worldwide.