College of Computer Sciences and Engineering

Systems Engineering Department

ISE 470– Truck Capacity

Utilization Project

Mohammed Alsakkaf Khaled Alfradi Omar alameeri

201381630 201343850 20334850

 OUTLINE
• Introduction

• Truck Capacity Utilization Project

• Conclusion
Trucks Capacity Utilization Project
 Define The Problem

The year to date average of AMSB trucks utilization is 44%

?What is the Impact of low trucks capacity utilization on the business

Cost per case ►
Time & Effort spent ►
Incensement of probability of returned orders ►
Trucks Capacity Utilization (DMAIC)
Objectives Project Scope

• Reduce the operational cost for the logistic Modern Trade Customers:
department by having a clear processes for • Al Danube Supermarkets.
shipping orders • Bin Dawood Super Stores
• Carrefour
• Manuel Supermarket
• AlRaya Supermarket
Project Goal • Farm Market
• Star Super Stores
• To increase the trucks capacity utilization up to 70%
• Sarawat Supermarkets
• Create Journey Plan for MT customers
• Lulu Hypermarket
• Fattah shopping center

Success Criteria / Expected Cost Saving

• Trucks capacity utilization Improved to 70%

• Create Routing Plan for MT Customers
• Reduction in delivering operational cost
Data Collenction
 Analyze the Problem

Gaps on Our warehouses Loading processes

.Gaps on alignment between Drivers and Merchandisers
Gaps on Offloading processes (Customers)
Gaps on Our warehouse Loading processes
.Drivers set their routes, not logistics team ►
.Warehouse staging area is unorganized based on outlets sequence on the route ►
.Data entry takes too much time printing all customers’ invoices and drivers’ gate passes ►
.Drivers go to the sales department to get the information of merchandisers ►
Gaps on alignment between Drivers and
Merchandisers.
• Delay in the availability of the merchandiser/s.

Gaps on Offloading processes ►

.Expired POs consumes time in offloading (Carrefour & Danube) ►
Visiting the same outlet 3-4 times per week with small quantities ►
.Drivers offload trucks & take orders inside the customer WH ►
 Results
The approximate number of daily
outlets 5 - 4
.reachable outlets per truck

minutes for all outlets 32

The average outlets' service time
minutes for Carrefour 75
Trucks
Three trucks serving MT customers ►
The capacity of each truck is 220 cases ►

Customers
Outlets 41 ►
Warehouses 4 ►
Outlets receive orders from 7:00 AM to 3:00 PM ►
 Improve
∙ Recommendations can be implemented immediately
1. Merchandisers should offload the orders
2. Merchandisers' information should be shared with the
logistics supervisor.

∙ Recommendations needs a Routing to be implemented

1. Logistic team should select the routes
2. warehouse team should prepare orders based on routes sequence
3. The plan of Merchandizers should be linked with proposed routes
 Routing

:Objectives
Create a monthly journey plan for delivering MT orders ►
Minimize the total travelling distance ►
 Analyze
• Categories outlets based on their weekly drop size.

If the Weekly Drop size is Frequency of visits of Outlets #

More than or equal 30 Cases Weekly 14

Between 15 and 30 cases Bi-Weekly 14

Less than or equal 15 Cases Monthly 18

 mTSP
Weekl Bi- Monthly
y Weekly
 Distance Metrices
Bin Dawood Bin Dawood Sarawat Bin Dawood Farm
From-To TI Manuel 5 Star 1 Farm 20 Farm 26 Farm 38 Star 2 Star 3 Farm 28 Farm 46 Star 4 Farm 61 Farm 64 Star 5
4 6 2 5 41
TI - 35.9 32 33 28.6 26.5 47 37.9 60 43 50.7 39 42 44.1 43.6 60.9 44 43 26.4
Bin Dawood
34 - 2.2 7.1 8.2 15.1 7 33.6 11.2 17.3 6.3 13.6 10.9 31.1
4 2.5 7.8 11.3 10.3 25.5
Bin Dawood
34 2.5 -
6 3.8 7.2 8.8 16.8 6.3 35.2 12.8 18.7 7.9 9.6 15.3 12.6 32.9 13 14.2 28
Manuel 5 33 2.7 2.7 - 5.9 7.1 16.7 6.7 35.1 12.7 18.6 7.8 10 15.8 12.4 32.5 12.8 13.4 24.4
Sarawat 2 28.7 7.5 4.3 7 - 4.9 18.4 10.7 30.7 12.6 20.2 12 13.5 20.6 18.6 36.8 18.9 19.4 21.9
Star 1 27.4 9.9 6.8 9.1 4.8 - 20.9 13.2 36.9 16.6 22.7 14.5 16.3 23.2 19.5 39.5 19.6 20.1 21.2
Farm 20 48 14.3 16.5 17.6 19.3 20.7 - 12.9 21.7 8 3.2 11.4 15 12 9.3 24.1 20.8 20 39.4
Farm 26 36.5 5.8 3..7 8.3 10 11.4 10.7 - 27.7 5.3 13.1 6.6 8.6 15.4 9.9 30.8 14 15.6 29.6
Farm 38 59 26.5 28 29.8 33.2 32.1 16 23.7 - 19.2 11.7 27.8 26.9 25.6 21.3 14.8 31.2 29 50.2
Star 2 44.6 10.5 12 13.9 13.6 16.1 5.8 5 22 - 8.8 7.6 13.1 11.4 8.7 29.5 18.7 19.5 35.4
Star 3 50.7 17.2 17.7 19.5 20.5 21.9 6.3 13.5 19.7 9.5 - 12.6 16.2 13.7 10.5 22.2 21.2 20 39.9
Bin Dawood
41.5 6.9 - 6.2 8.4 5.7 27 13 15
5 11.1 9.7 13.8 15.2 9.2 5.8 23.4 5.2 11.3 30.1
Farm 28 42 8.6 12.9 9.4 15.6 17 12.8 10.5 31 11.2 14.5 6.9 - 4.2 3.8 22 9.9 7.9 29
Farm 46 46.5 12.8 17 14.3 21 22.4 12.8 12.9 31 10.7 14.5 8.9 6 - 3.9 21 12 9.1 30.7
Star 4 44.1 10.4 12.7 11.9 18.6 18.9 9.6 9.9 28.1 7.7 11.6 6.4 5.6 2.7 - 19.9 13.8 9.6 32.6
Farm 41 66.8 29 33.2 30.5 36.4 37.5 23 30.8 12.8 26.2 18.7 27 20 21 19.3 - 26.4 23.9 45.1
Farm 61 48 10.4 12.6 11.8 18.1 18.5 22.3 15 34 18.2 21.1 13 10 11 12.4 25.7 - 4.2 26.8
Farm 64 53 11.4 13 12.5 19 19.2 21.2 16.1 32.8 19 20.2 13 7.4 6.7 11.3 22.9 4.2 - 29.5
Star 5 28.5 30.2 27.6 26.4 24.7 24 44.1 34.8 55.9 38.3 42.9 33.2 29.9 31.3 32.5 47.6 29.5 29.3 -
Mathematical model of mTSP
AMPL Model
Results
 Results Validation
Route 3
Trip FROM TO Departure Time Trip Time Arrival time Break Time Service time Finish time
Danube
1 TI 8:30 1:00 9:30 0:40 10:10
2
Danube Danube
2 10:15 0:22 10:37 0:40 11:17
2 1
Danube Danube
3 11:22 0:14 11:36 0:40 12:16
1 4
Danube Danube
4 12:21 0:22 12:43 0:40 0:40 14:03
4 8
Route 4
Departure Break
Trip FROM TO Trip Time Arrival time Service time Finish time
Time Time
1 TI Danube6 8:30 0:55 9:25 0:40 10:05
2 Danube6 Danube3 10:05 0:16 10:21 0:40 11:01
Carrefour
3 Danube3 11:01 0:14 11:15 0:40 1:15 13:10
2
4 Carrefour 2 Danube5 13:10 0:09 13:19   0:40 13:59
# Week Day Truck 1 Truck 2 Truck 3
SUN Route 1 Route 6
MON Route 2 Route 7  
 
Week 1 TUE Route 3 Route 8
-
WED Route 4 Route 9  
THU Route 5 Route 10
SUN Route 1
   
MON Route 2
   
Week 2 TUE Route 3
- -
WED Route 4
   
THU Route 5
SUN Route 1 Route 6
MON Route 2 Route 7  
-
Week 3 TUE Route 3 Route 8
 
WED Route 4 Route 11  
THU Route 5 Route 12
SUN Route 1
 
MON Route 2
   
Week 4 TUE Route 3
- -
WED Route 4
 
THU Route 5
 Project Summary

Criteria Before After Percentage of Improvement

Number of Trucks needed 3 1.5 50%
Capacity Utilization 44% 73% 29%
Delivery cost Per Case SR 7.6 SR 2.5 67%
Travelled Distance Per route KM 67 KM 50.7 24%
Orders less than 10 Cases 52% 1% 51%
Thank you for your time and patience

?Any Questions