In the present paper, an innovative model for the estimation of municipal solid waste generation and collection is proposed. This model is part of an extended solid waste management system and uses a spatial Geodatabase, integrated in a GIS environment. It takes into consideration several parameters of waste generation, such as population density, commercial activities, road characteristics and their influence on the location and allocation of waste bins. Ground-based analysis was applied for the estimation of the inter-relations between the aforementioned factors and the variations in waste generation between residential and commercial areas. Therefore, the proposed model follows a unified categorization approach for residential and commercial activities and focuses on the dominant factors that determine waste generation in the area under study. The most important result of the research work presented in the current paper is an accurate estimation of the optimal number of waste bins and their allocation. A new methodology and an appropriate algorithm have been developed for this purpose in order to facilitate routing and waste collection. By using these results, municipalities aware of social, economical and environmental factors, related to waste management, can achieve optimal usage of their resources and offer the best possible services to their citizens.