eprintid: 713
rev_number: 8
eprint_status: archive
userid: 17
dir: disk0/00/00/07/13
datestamp: 2017-08-15 22:36:53
lastmod: 2017-08-15 22:36:53
status_changed: 2017-08-15 22:36:53
type: report
metadata_visibility: show
creators_name: Hjorth, P.G.
creators_name: Lacey, A.A.
creators_name: Micheletti, Alessandra
creators_name: Tzanetis, D.
creators_name: Kostoglou, V.
creators_name: Novakovic, R.
creators_name: Rossides, A.
creators_name: Sterev, N.
creators_name: Zachariou, M.
corp_creators: Prokopis Prokopiou
title: Cost Optimization of Ice Distribution
ispublished: pub
subjects: food
studygroups: esgi125
companyname: Party Ice Ltd, Cyprus
full_text_status: public
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.
problem_statement: Challenge 1: Selecting the optimal distribution schedule for distant-from-base areas when using two vehicles. Each driver is responsible for a particular route each day. On the occasion his supplies are depleted before completing his route, a new fully loaded truck is dispatched to a location near his next delivery stop. The driver then continues his route with the newly stocked truck while the empty truck returns to base (Nicosia). In the case that deliveries to distant-from-base regions (e.g. Famagusta) require a second truck, it is important to fix the schedule over the delivery route in order to optimize fuel costs. One strategy is to begin by delivering at the customer closest to the distribution centre (the base), having the benefit of progressively unloading the truck, hence potentially saving on fuel costs due to the overall lower truck weight. A second strategy is to drive to the furthest destination and begin delivering from there, coming backwards towards the distribution centre.
Challenge 2: Short-term handling of urgent orders. The choice of optimal route based on geographical location is often disrupted due to urgent (unplanned) orders. The company would like to identify how to optimally cater for these urgent requests in the short term (how to alter the route for one day). Certain rural areas are not visited every day. Hence, if a customer from such a region has an urgent request the driver has to modify his route and leave his assigned district to make the urgent delivery. In that case the driver must optimize his route by selecting at what point he should deviate from his normal schedule to make the extra delivery, before returning to the regular route at the next normal delivery point.
date: 2017-07-31
related_url_url: https://www.esgi-cy.org/problems/
citation:   Hjorth, P.G. and Lacey, A.A. and Micheletti, Alessandra and Tzanetis, D. and Kostoglou, V. and Novakovic, R. and Rossides, A. and Sterev, N. and Zachariou, M.  (2017) Cost Optimization of Ice Distribution.  [Study Group Report]     
document_url: http://miis.maths.ox.ac.uk/miis/713/1/ESGI125_problem3_PartyIce.pdf