2010 Wagner Prize Finalist - Blockbuster Distribution

A Short-Range Scheduling Model for Blockbuster's Order Processing Operation

We describe the creation and implementation of a Mixed Integer Programming model to schedule Blockbuster's short-range order processing operations. This application, in daily use since January 2007, has resulted in cost savings of about $4.17 million over 2007-2009, in addition to significantly improved capacity utilization. Recognizing that Blockbuster's system of multiple processing departments which compete for subsequent shared resources is typical in industry, we also discuss the adaptability of our approach to other organizations.