Multiple Multiple Route Route Optimizatio Optimizatio n n Kunkel Kunkel Trucklines Trucklines Team 2 Team 2 Merina Kansakar Merina Kansakar Adam Nussbaum Adam Nussbaum Maitri Thakur Maitri Thakur Brad Weed Brad Weed
Dec 22, 2015
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 $2,622
Fuel CostFuel Cost
Fuel Cost and Total Transportation Cost
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
0 10 20 30 40 50 60 70 80 90 100
% Increase in Fuel Cost
Tra
nsp
ort
atio
n C
ost
per
Mil
e ($
/mil
e)
2000
2200
2400
2600
2800
3000
3200
3400
3600
To
tal
Tra
spo
rtat
ion
Co
st (
$)
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