CASE 4 Trasnportation Strategy

Thus, from the above calculation, it can be exhibited that trucks have to wait to unload after 10.03 am for total 256.5 truck hours. The maximum number of trucks that will wait in a day will be 14.

2. What is the total cost? How much of the total cost are labor costs? Capital costs?

350-400 miles off their planned trip. It seemed to be a good idea to follow

In order for freight to successfully merge onto the Intellimerge, logic is in place that determines priority to lanes, and increased priority to any line that has a full or nearly-full accumulator. Because line 6 is from two ART lines it is given more priority to reduce downtime to the team members working on the ART lines. The recirculation line also receives special priority in order to prevent a “gridlock situation. Freight will also pass through a gap optimizer belt to optimize gaps that were established upstream. This is essential to present equally spaced product to a sorter, insuring a correct divert. Lane 6 is special because it can have up to twice the amount of product coming to it so a blow through mode was created for when the lane becomes 100% full. When lane 6 is full all other lanes will be disabled and lane 6 will continue to release without building slugs. Lane 6 will continue to stay in blow through mode for 10 seconds after becoming less than 100% full.

1. We have been trying to resolve this since out truck was impounded Saturday at 1:00am.

* Loads were picked up from location A and delivered to one of 5 warehouses, placed on another truck with optimized route for location B (software driven route optimization)

At receiving plant no. 1 (RP1), trucks would arrive randomly throughout the day, with a random amount of berries, anywhere from 20 to 400 bbls. In order to utilize transport vehicles more effectively, there should be crews scheduled differently on peak days. It only takes 5 to 10 minutes to unload a

With the bottleneck occurring so early in the process, it is critical that the early steps become more efficient. Hiring more personnel for this step would help ease the back up here but more staff would also increase expenses at a time when the company is trying to reduce costs. An alternative fix would be schedule regular pick ups and deliveries to reduce the uncertainty and efficiency of the way drop offs are occurring. Additionally, if pickups were scheduled, costs could be reduced as LAA could rely on their six trucks to make 4 scheduled pick up/deliveries and could eliminate the need to outsource to a private company. Another thought to address this step is to completely outsource the pick ups, thereby eliminating the cost of truck fuel, maintenance and other expenses. The major problem with the current delivery system in place is that drop offs can occur at any time during a 16-hour work day.

* Last truck arrived (1140min) – First truck arrived (411min) = 729min (=1140 - 411) → 729min/60 = 12.15hrs (Total receiving time)

Simply using a constant rate with plow hours to determine driver cost is not sufficient, since driver cost is step-variable due to overtime pay.

We will keep our quantity levels at 400 to ensure that each time both trucks leave they are carrying at their max capacity. The trucks will operate at $15,000 dollars per trip even when it is not full. To ensure that we minimize our cost, and eventually reach our goal of maximizing our profits, we made sure that each time the truck leaves, it leave with a full load.

Approximately 25% of the shipments to the plant arrive in farmer-owned trucks. These shipments vary in size from 50 to 200 hogs. The farmer’s scheduled delivery affects the overall hogs supply, and the plant is heavily dependent on the farmers schedule accuracy.

It would then be directly stocked in the Kansas City distribution center and used to replenish the warehouses. They expect that very little would need to be shipped back to the Los Angeles warehouse after the new system was operating for about six months.

Each Truck takes 36 m3 / load with 128 m3 / hr to get 0.28 hr/load.

3.   The travel time is 1 hour.  While this is considered part of the service time it actually means that the customer will be waiting during the first hour of the service time.  Thus, travel time must be added to the time spent in line as predicted model in order to determine the total customer waiting time.