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Multiple Route Optimization Kunkel Trucklines

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.

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Multiple Route Optimization Kunkel Trucklines

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  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?

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