COSTA: contribution optimizing sales territory alignment

A new approach is proposed to overcome the problems posed by the balancing approach model. The model sought to maximize profit directly by taking into account the problems associated with allocating selling time across accounts and assigning accounts to territories. The new approach called COSTA, or contribution optimizing sales territory alignment, consists of an assignment model and an allocation model. Results indicate the usefulness of COSTA as evidenced by substantial profit improvements and by outlining the weaknesses of almost balanced territories.