Warehouse to Dealer Transfer

Problem:

Coco Cola is a beverage industry that produces Beverage Drinks for all of its customer in the region. It has a production capacity of 500,000 cases per month. Since it only produces 1 variant of a beverage product which is 1 Liter of soft drinks bottled in a glass bottle. It needs to make sure the safety of shipment of product when it is delivered.

Here are the initial data for the delivery operations:

• 1 Pallet of Full goods has an equivalent volume of 63 cases
• Demand for the product is 60,000 cases / month
• 24 Days / Month Production Days

The SCM manager needs to decide on the specific mode of transporting there products to its warehouses and has 4 options in transporting the product. The specification and capacity are stated below

Type of Truck	Capacity per Transfer (Pallets)	TAT (Hours)	Truck Ban Allowed
Tractor w. Palletized Trail	20	8	Yes
10-wheeler w/ Palletized Body	16	7	No
10-wheeler w/ Palletized Body	14	7	No
6-wheeler w/ Palletized Body	8	5	Yes

Assuming that the operation of the Manufacturing Plant is 24 Hrs. Meanwhile, the truck in the City is specifically indicated in two-time frames, Specifically 0600H 0900H & 1700H 2100H. Usually, based on Observations hauler tend not to travel 1 hour before the truck for them to ensure that they will not be caught up with the truck ban to eliminate penalties.

Meanwhile, it is the task of the warehouse to transfer the full goods to different dealer of the company. The warehouse manager was in a job to choose which hauler to choose for its dealer delivery. Due to the roads limitations of the different dealer, the warehouse manager has the following choices.

Type of Delivery Truck	Capacity (Pallets)	Load Factor	Truck Ban Allowed?
Minitruck	2	300%	Yes
Route Truck	4	200%	Yes
6-Wheeler Truck	6	100%	No
6-Wheeler Truck	8	100%	No

• Load factor is determined by the number of trips per
• Delivery Schedule is 8 hours per day, 8AM 5PM

Determine the following:

1. How many delivery trucks is required to make sure they are able to serve the requirements of the plant in transferring their products.
2. What truck is the most economical one to use in their warehouse delivery operation and why?
3. What is your recommendation to the warehouse Manager for their delivery operations?
4. Show your solution per type of truck.
5. What decision would you recommend if no truck is in place?