1 / 16

Multiple Route Optimization Kunkel Trucklines

Kunkel Trucklines needed to optimize its refrigerated grocery freight route, resulting in 29% cost reduction and 5 trucks usage. Sensitivity analysis on delivery windows, fuel cost, number of trucks, and shipment volume was performed. Recommendations include using the optimized solution for weekly savings of $972.39 and $50,564.28 annually.

wdeborah
Download Presentation

Multiple Route Optimization Kunkel Trucklines

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Multiple Route OptimizationKunkel Trucklines Team 2 Merina Kansakar Adam Nussbaum Maitri Thakur Brad Weed

  2. Agenda • Problem description • Results of optimized solution • Comparison of old vs. optimized solution • Sensitivity Analysis • Recommendations

  3. 0,0 15,25 67,95 33,138 32,151 26,200 -17,249 -33,276 Problem 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

  4. 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

  5. Kunkel Trucklines Routing Data

  6. 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

  7. 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

  8. Current vs. Optimal Solution • 29 % reduction in cost from $ 3,361.46 to $ 2,389.07 per week • 5 trucks used instead of 7

  9. Sensitivity Analysis • Delivery Windows • Fuel Cost • Number of Trucks • Shipment Volume

  10. 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

  11. Delivery Windows • 9.5% cost increase from $2,389 to $2,622

  12. Fuel Cost

  13. Number of Trucks • For less than 5 trucks, all destinations not serviced • No change in the routes and cost for more than 5 trucks

  14. 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

  15. Recommendation • Use optimized solution • 5 trucks for 7 stops • Weekly savings of $972.39 • $50,564.28 savings annually

  16. Thank you Questions?

More Related