Vehicle routing for milk procurement

Authors

• Janat Shah, Indian Institute of Management BangaloreFollow

Document Type

Article

Abstract

In a typical co-operative dairy, one of the significant operating costsunder the control of the management is the cost of milk collectionand transportation. (Exhibit 1 shows the typical cost structure of adairy) The dairy under study picked up milk from 500-800 pick uppoints (nodes) twice a day. The vehicle routes were decided manu-ally keeping in mind the peak load expected at the nodes during thecoming year. The dairy had about 50 odd routes, each route cover-ing an average of 15 nodes. Usually dairies do not own the ve-hicles but use transport contractors who enter into an annual con tract with the dairy for a specific route. The type of vehicle usedwould depend on the expected load on that route.

Recommended Citation

Shah, Janat (2000) "Vehicle routing for milk procurement," IIMB Management Review: Vol. 12: Iss. 4, Article 16.
Available at: https://research.iimb.ac.in/imr/vol12/iss4/16

Publication Date

12-1-2000

First Page

72

Last Page

74