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

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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?