Subregion districting analysis for municipal solid waste collection privatization

Privatization of municipal solid waste (MSW) collection can improve service quality and reduce cost. To reduce the risk of an incapable company serving an entire collection area and to establish a competitive market, a large collection area should be divided into two or more subregions, with each subregion served by a different company. The MSW subregion districting is generally done manually, based on the planner's intuition. Major drawbacks of a manual approach include the creation of a districting plan with poor road network integrity for which it is difficult to design an efficient collection route. The other drawbacks are difficulty in finding the optimal districting plan and the lack of a way to consistently measure the differences among subregions to avoid unfair competition. To determine an MSW collection subregion districting plan, this study presents a mixed-integer optimization model that incorporates factors such as compactness, road network integrity, collection cost, and regional proximity. Two cases are presented to demonstrate the applicability of the proposed model. In both cases, districting plans with good road network integrity and regional proximity have been generated successfully.