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We were planning to develop an application using Openlayers, which can display the incoming GPS signals as markers and create alerts , if the markers( positions) are outside a particular zone.

Is this possible through Openlayers code ? or do we have to use something JSTS Topology suite with Openlayers ?

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Please check following link – Sunil Feb 18 '13 at 12:28
Displaying the markers seems like no problem. What do you need the alerts to do? That may be limited by what is achievable with Javascript in a typical browser setting. – BradHards Feb 19 '13 at 9:28

Yes, it is possible. However you have a whole bunch of other issues to resolve. But it is possible with a simple intersects calculation of 2 geometries.

Overall, the problem I see with your approach is that it requires a client-side GUI and someone looking at it to trigger a geofencing alert. That should probably be done on the server side and sent out as email and/or made available to the client on some polled ajax request. But...what you asked for is possible.

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