Cost Optimization of Ice Distribution

Abstract

Two questions regarding minimizing fuel costs while delivering ice along a pre-set route are tackled.
The first question is when demand exceeds the load of a single truck, so that a second truck of ice has to be taken to some point of the route for the driver/salesman to continue with that for the rest of the route: Is it better:
1) for the first truck to deliver starting from the costumer nearest to the base, or
2) for the first truck to start the delivery from the last costumer (the most distant from the base)?
We show that the second strategy was better for the particular data looked at, and we have the basis of an algorithm for deciding which strategy is the better for a given delivery schedule.

The second question concerns how best to modify a regular sales route when an extra delivery has to be made. Again, the basis for an algorithm to decide how to minimize fuel costs is derived.