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 –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, , ,249

Kunkel Trucklines Routing Data Total cost per mile = $ 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 DestinationShipment volume (lbs) Delivery windows Sheldon, IA29,00012 am – 7 pm Sioux City, IA38,00012 am – 9 am Missouri Valley, IA31,00010 am – 11 pm Council Bluffs, IA24,00012 am – 4 am Hamburg, IA19,00012 am – 1 pm St. Joseph, MO16,00012 am – 3 am Kansas City, MO5,0002 am – 6 am

Current Model Number of trucks is 7 Maximum capacity of 44,000 lbs Total cost = $ 3, 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, 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, to $ 2, 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 RouteOriginal Service Destinations New Service Destinations 3Missouri Valley, IA Kansas City, KS 4Council Bluffs, IA Hamburg, IA Council Bluffs, IA 5St. Joseph, MOHamburg, IA St. Joseph, MO 9.5% cost increase from $2,389 to $2,622

Fuel 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 $ – $50, savings annually

Thank you Questions?