Create Territories from Seed Points

Seed Points are point locations used in Territory Design to determine starting points for creating territories. Seed points can be anything from franchise addresses and sales offices to distribution centers and are a common method for creating territories. For example, if you have a group of salespeople in offices around the Greater Chicago area, you can use this option to create and balance their respective sales territories using a base geography around each location.

Seed Points Clustering

Territory Design has complex algorithms for clustering seed points and a number of clustering options as shown in the image below.

Seed points can be clustered using seed point locations only or locations and a point weight. Resulting clusters can be converted to territory centers using different options:

• Use all cluster points—If this option is selected, all points of one cluster will be merged to one multipoint territory center. The territory created from such a center can be noncontiguous if the distance is small. This option can guarantee that each seed point will be used as part of territory center.
• Use the cluster's center— If this option is selected, and the Shift cluster center to nearest point check box is unchecked, the geometric center of the points cluster will be used as the territory center. If the Shift cluster center to nearest point check box is checked, the nearest to geometric cluster center seed point will be used as the territory center. This option can leave some seed points unused in territories.
• Use most weighted cluster point— This option is available if the seed point weight is used to cluster points. The most weighted cluster point will be used as the territory center. This option can leave some seed points unused in territories.

Optimal Number of Territories Calculation

Optimal by Capacity

Formula:

where N - optimal number of territories, Sum _k - summary value of k^th variable at specified or max extent, Capacity_k - value of capacity of k^th variable, Tolerance_k - value of tolerance of k^th variable (from 0 to 0,99).

Algorithm:

1. Calculate summary value for each variable in specified or max area extent.
2. Find optimal number of territories for each variable (sum/variable value).
3. Calculate weight of each variable based on tolerance value (tolerance shows importance of variable, less tolerance - more important variable).
4. Calculate average optimal number using variables weight.

Optimal by Distance

Optimal Number = Current Territory Extent Area / Maximum area of territory (pi * Maximum Distance^2)

If a Territory Extent is not set, the area of the entire base layer will be used.

Import Territory Names from a Layer or Table

This feature allows you to select names for territories using a user database or feature layer with territory names. This can be a table or layer containing a territory manager's list or other data suitable for naming territories. If it is a feature layer with a geometric field, then this field will be taken into account for assigning the name to a nearest territory. Importing territory names is available for Create Territories from Seed Points, Create Territories from centers of density, and Manually create territories.

How does it work?

The source layer or table for importing territory names (Name Table) from can be selected in the Create Territories wizard.

If the Use unique names only check box is checked, names table will be filtered and duplicates will not be used.

If you select a table without a location attribute, names will be assigned to territories one by one.

If you select a feature layer, each territory will search for the nearest name. Each name can be assigned only once (to only one territory). The selected feature layer can have any location field type. Nonpoint geometries will be converted to points using the Area Centroid method.

In Manual create territories mode, if you create a new empty territory, it uses the first unassigned name, even if the name has location information. Name tables are linked to the selected level in the Create Territories wizard, so Manually create territories can have different name tables for each level. Name tables are serialized within a territory solution, so you can continue using selected name tables after loading the territory solution.

Create Territories from Seed Points and Create Territories from centers of density commands will reset the name table after use, so it is not possible to use half of the names in auto mode and continue create territories manually using the second half of names.

If a Territory Extent is assigned, it will be applied to the names feature layer. Only names located inside the extent will be used for naming territories.

Names table has a limit on the number of records. Only the first 200,000 names will be used if this is a simple table, and the first 100,000 names located in the Territory Extent will be used if this is a feature layer.

If you decide to import territory names, then additional service options will be available on a page where the number of territories to create is selected.

Setting Capacity Values

Setting capacity values is an important feature to constrain your territories. A capacity value is a threshold you can set to ensure that a territory does not exceed one or more variable limits. For example, you can specify that all territories must stop growing in an area when a population of 150,000 is reached. The 150,000 figure is the capacity value. You can also set a tolerance value if more than one variable is used to create territories. A tolerance value gives a plus-or-minus range of the capacity value and allows more overall balanced territories. For example, if the capacity value is a population of 150,000 and the tolerance is set at 20,000 people, then the range is 130,000 as a floor and 170,000 as a ceiling. This section provides more information about creating territories by setting capacity and tolerance values.

Option 1: Each variable reaches capacity value

Territory creation is stopped only if all variables reach their specified values. As a result, some variables can be much greater than specified.

Option 1 with Tolerance activated: Territory creation stops if some variable(s) reaches the specified value and some variable(s) reaches the floor boundary (specified value minus tolerance).

Option 2: Any variable reaches capacity value

Territory creation is stopped if any variable reaches its specified values. As a result, some variables can be much less than specified.

Option 2 with Tolerance activated: The territory creation will continue while any variable hasn't yet reached the ceiling boundary (specified value plus tolerance) or all variables haven't yet reached the specified value.