review the previous day’s production | My Assignment Tutor

Load Planning Each morning, a load planner must review the previous day’s production to erode large orders and consolidate less-than-ruckload (La) orders into truckload quantities. Special attention is necessary to ensure that delivery requirements are met for orders that are consolidated. Orders typically weigh between 1000 and 150,000 pounds. A truck can generally pull a trailer with 46,000 to 48,000 pounds of paper. Depending on the construction of the trailer, this is the maximum weight limit that can be loaded while remaining under federal weight limits. Some care must also be taken to remain within axle weight limits. The goal of the load planner is to maximize the weight on a trailer while determining a route that minimizes the total number of miles traveled per day, with no truck making more than four stops (three stops plus the final destination). Distribution This case focuses on the distribution problem shown in the bold box in Figure 5.45. After loads are planned, they are turned over to a transportation planner to assign carriers to loads. The planner has a contract for each carrier that gives the rates to each destination served (state or zip code range). The rates include a mileage charge, a stop-off charge, and a minimum charge per truckload. The transportation planner also has a list of the trailers available for each carrier The planner will select a carrier for a given shipment based on the knowledge of the best carriers for a given traffic lane, subject to availability. Some carriers have minimum daily volume commitments that must be met. After the carrier is selected for a given load, the planner updates the information in the mill’s mainframe computer and displays this information in the shipping area. The selected carrier’s trailer is spotted and brought to the loading dock and loading commences. The shipment information is then phoned or faxed to the carrier. A Sample Distribution Problem Table 5.10 contains a scaled-down version of a typical distri-bution problem faced by a transportation plannerat Westvaco’s paper mill in Wickliffe, Kentucky. The load planner has determined that 32 truckloads are needed to distribute last night’s production. In the shipping area, 33 drivers from six carriers are wait-ing for their trucks to be loaded. One truck will not be needed today. The carrier PSST has four trucks in the shipping area, and Westvaco has a contractual obligation to use all four of these trucks today. (In practice, it would not be unusual for a transportation planner to assign 25 truckloads to 20 carriers in a single day.) The mileage numbers in Table 5.6 represent the total number of miles for the trip from Wickliffe to the final destination, including any intermediate stops. The total charge is calculated as follows. Suppose that the Roseville, Minnesota. trip is assigned to carrier IRST_ The cost to Westvaco would be 600(1.13) 3(75) = $903. (If the cost calculated this way were less than IRST’s minimum truckload charge of $400, the cost to Westvaco would be $400.) Stop-off charges apply only to intermediate stops and not the final destination. Four truckloads are needed to go to Atlanta, Georgia These truckloads can be assigned to a single carrier, or they can be split among several carriers. If carrier MRST is assigned one of these truckloads, the cost is 6 I 2(0.87) $532.Question For the distribution data shown in Table 5.6. what is the least-cost assignment of truckloads to carriers that meets the necessary requirements? What is the cost of this distribution plan? Epilogue Carrier selection at Westvaco was done manually (with pencil and paper!) by transportation planners in the past. A side-by-side test of a spread-sheet LP solution versus manual selection indicated daily savings in the range of 3% to 6%, and so the project was approved, With annual trucking costs of about $15 million, the total savings with the new approach have been significant. In addition to this benefit, there have been a number of serendipitous side effects. The optimization technique removes the guesswork from carrier selection, especially on weekends, where revolving coverage addedCase 5.1 Optimized Motor Carrier Selection at Westvaco 275

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