Name
Abstract | ||
|---|---|---|
This paper studies a districting problem that arises in the context of financial product pricing. The challenge lies in partitioning a set of small geographical regions into a set of larger territories. In each territory, the customers will share a common price. These territories need to be contiguous, contain enough customers and be as homogeneous as possible in terms of customer value. To address this problem, we present a column generation-based heuristic where the subproblem generates contiguous territories taken into account a nonlinear objective function. Computational results indicate that the territories produced by this heuristic are about 35% more homogeneous than those previously used in practice. The developed algorithm has been transferred to a financial firm and is now used to help craft more competitive financial products. |
Year | DOI | Venue |
|---|---|---|
2015 | 10.1057/jors.2014.64 | Journal of the Operational Research Society |
Keywords | Field | DocType |
districting,financial product pricing,clustering,column generation,heuristic | Customer value,Heuristic,Column generation,Homogeneous,Computer science,Operations research,Financial services,Cluster analysis,Finance,Operations management | Journal |
Volume | Issue | ISSN |
66 | 6 | 0160-5682 |
Citations | PageRank | References |
2 | 0.67 | 17 |
Authors | ||
4 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Pierre de la Poix de Fréminville | 1 | 2 | 0.67 |
| Guy Desaulniers | 2 | 874 | 62.90 |
| Louis-Martin Rousseau | 3 | 888 | 63.71 |
| Sylvain Perron | 4 | 62 | 7.06 |