multiple route optimization kunkel trucklines
DESCRIPTION
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. 0,0. 15,25. 67,95. 33,138. 32,151. - PowerPoint PPT PresentationTRANSCRIPT
Multiple Route Multiple Route OptimizationOptimizationKunkel TrucklinesKunkel Trucklines
Team 2Team 2Merina KansakarMerina KansakarAdam NussbaumAdam Nussbaum
Maitri ThakurMaitri ThakurBrad WeedBrad Weed
AgendaAgenda
• Problem description• Results of optimized solution• Comparison of old vs. optimized solution• Sensitivity Analysis• Recommendations
Problem DescriptionProblem Description• Kunkel Trucklines: Refrigerated grocery freight• Depot- Worthington, MN• 7 stops
– Sheldon, IA– Sioux City, IA– Missouri Valley, IA– Council Bluffs, IA– Hamburg, IA– Saint Joseph, MO– Kansas City, MO
0,0
67,95
15,25
33,138
26,200
32,151
-33,276
-17,249
Kunkel Trucklines Routing DataKunkel 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 DataKunkel Trucklines Routing Data
Destination Shipment volume (lbs)
Delivery windows
Sheldon, IA 29,000 12 am – 7 pm
Sioux City, IA 38,000 12 am – 9 am
Missouri Valley, IA 31,000 10 am – 11 pm
Council Bluffs, IA 24,000 12 am – 4 am
Hamburg, IA 19,000 12 am – 1 pm
St. Joseph, MO 16,000 12 am – 3 am
Kansas City, MO 5,000 2 am – 6 am
Current ModelCurrent 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 ModelOptimal Routing ModelTotal Cost = $ 2,389.07
Number of Trucks used = 51: Worthington, MN <-> Sheldon, IA2: Worthington, MN <-> Sioux City, IA3: Worthington, MN <-> Missouri Valley, IA4: Worthington, MN -> Council Bluffs, IA -> Hamburg, IA -> Worthington, MN5: Worthington, MN -> St. Joseph, MO -> Kansas City, MO -> Worthington, MN
Current vs. Optimal SolutionCurrent vs. Optimal Solution
• 29 % reduction in cost from $ 3,361.46 to $ 2,389.07 per week
• 5 trucks used instead of 7
Sensitivity AnalysisSensitivity Analysis
• Delivery Windows
• Fuel Cost
• Number of Trucks
• Shipment Volume
Delivery WindowsDelivery 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 WindowsDelivery Windows
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
• 9.5% cost increase from $2,389 to $2,622
Fuel CostFuel Cost
Fuel Cost and Total Transportation Cost
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
0 10 20 30 40 50 60 70 80 90 100
% Increase in Fuel Cost
Tra
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ost
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Mil
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/mil
e)
2000
2200
2400
2600
2800
3000
3200
3400
3600
To
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Tra
spo
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Co
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$)
Cost/mile
Total Cost
Number of TrucksNumber of Trucks
• For less than 5 trucks, all destinations not serviced
• No change in the routes and cost for more than 5 trucks
Shipment VolumeShipment 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
RecommendationRecommendation
• Use optimized solution
– 5 trucks for 7 stops
– Weekly savings of $972.39
– $50,564.28 savings annually
Thank youThank you
Questions?Questions?