Commercial territory design planning with realignment and disjoint assignment requirements

► A commercial districting problem with realignment and disjoint assignment is introduced. ► An MILP model is presented and a solution procedure based on branch and bound with cut generation is proposed. ► The exponential number of connectivity constraints is successfully handled by a cut generation scheme. ► Strategies such as variable fixing and forced connectivity enhance performance. ► Near-optimal designs to very large-scale real-world instances are obtained at a reasonably small computational effort.