Transcript Supply Chain Management: Multiple Route Optimization

Multiple Route
Optimization
Kunkel Trucklines
Team 2
Merina Kansakar
Adam Nussbaum
Maitri Thakur
Brad Weed
Agenda
•
•
•
•
•
Problem description
Results of optimized solution
Comparison of old vs. optimized solution
Sensitivity Analysis
Recommendations
Problem Description
• Kunkel Trucklines: Refrigerated grocery
freight
• Depot- Worthington, MN
• 7 stops
0,0
–
–
–
–
–
–
–
Sheldon, IA
Sioux City, IA
Missouri Valley, IA
Council Bluffs, IA
Hamburg, IA
Saint Joseph, MO
Kansas City, MO
15,25
67,95
33,138
32,151
26,200
-17,249
-33,276
Kunkel Trucklines Routing Data
Total cost per mile = $ 1.283
• Fuel cost = $ 0.57
• Driver wage = $ 0.37
• Licenses = $ 0.02
• Tires = $ 0.04
• Repairs = $ 0.04
• Worker’s compensation = $ 0.04
• Insurance = $ 0.07
• Depreciation = $ 0.133
Kunkel Trucklines Routing Data
Destination
Sheldon, IA
Sioux City, IA
Missouri Valley, IA
Council Bluffs, IA
Hamburg, IA
St. Joseph, MO
Kansas City, MO
Shipment
volume (lbs)
Delivery
windows
29,000
38,000
31,000
24,000
19,000
16,000
5,000
12 am – 7 pm
12 am – 9 am
10 am – 11 pm
12 am – 4 am
12 am – 1 pm
12 am – 3 am
2 am – 6 am
Current Model
•
•
•
•
Number of trucks is 7
Maximum capacity of 44,000 lbs
Total cost = $ 3,361.46 per week
Driver’s break schedule:
– 1 hour break after 6 working hours
– 9 hour break after another 8 working hours
Optimal Routing Model
Total Cost = $ 2,389.07
Number of Trucks used = 5
1: Worthington, MN <-> Sheldon,
IA
2: Worthington, MN <-> Sioux City,
IA
3: Worthington, MN <-> Missouri
Valley, IA
4: Worthington, MN -> Council
Bluffs, IA -> Hamburg, IA ->
Worthington, MN
5: Worthington, MN -> St. Joseph,
MO -> Kansas City, MO ->
Worthington, MN
Current vs. Optimal Solution
• 29 % reduction in cost from $ 3,361.46 to
$ 2,389.07 per week
• 5 trucks used instead of 7
Sensitivity Analysis
•
•
•
•
Delivery Windows
Fuel Cost
Number of Trucks
Shipment Volume
Delivery Windows
• Location 4. Council Bluffs, IA
– 12:00 am -5:00 am  12:00 am - 3:00 am
• Location 5. Hamburg, IA
– 12:00 am -1:00 pm  12:00 am - 7:00 am
• Location 6. St. Joseph, MO
– 12:00 am -3:00 am  2:00 am - 4:00 pm
• Location 7. Kansas City, MO
– 2:00 am -6:00 am  9:00 am - 8:00 pm
Delivery Windows
• 9.5% cost increase from $2,389 to $2,622
Route
Original Service
Destinations
New Service
Destinations
3
Missouri Valley, IA
Missouri Valley, IA
Kansas City, KS
4
Council Bluffs, IA
Hamburg, IA
Council Bluffs, IA
5
St. Joseph, MO
Hamburg, IA
St. Joseph, MO
Fuel Cost
1.9
3600
1.8
3400
3200
1.7
3000
1.6
2800
1.5
2600
1.4
2400
1.3
2200
1.2
2000
0
10
20
30
40
50
60
70
% Increase in Fuel Cost
80
90
100
Total Trasportation Cost ($)
Transportation Cost per Mile
($/mile)
Fuel Cost and Total Transportation Cost
Cost/mile
Total Cost
Number of Trucks
• For less than 5 trucks, all destinations not
serviced
• No change in the routes and cost for more
than 5 trucks
Shipment Volume
• Council Bluffs and Hamburg: total weight of
43,000 lbs
– Cannot increase more than 1000 lbs in total
• St. Joseph and Kansas City : total weight of
21,000 lbs
• If either of the other loads were to decrease,
possible to combine loads and reduce total
transportation cost
Recommendation
• Use optimized solution
– 5 trucks for 7 stops
– Weekly savings of $972.39
– $50,564.28 savings annually
Thank you
Questions?