Milk Trucks Case Study

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• C- total cost of Milk Runs given per day
• S1- the cost per small truck (407) per day
• S2- the cost per large truck (909) per day
• S3- the fixed administrative cost charged per day
• X1- number of small trucks used every day
• X2- number of large trucks used every day
• Pj- trips of the small trucks
• Qj- trips of the large trucks
• jth- supplier for every day
• Mj- the mass to be transported
• Kj and Lj- the round-trip times to the jth supplier
Let S1 be the cost per small truck (407) per day, S2 cost per large truck (909) and S3 be the fixed administrative cost charged per day by LSP to the company. Let the number of small trucks used every day be X1 and large number of trucks used every day be X2.
The total cost of Milk Runs given
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Direct labor, manufacturing overhead, and indirect materials would be credited and the WIP account would be debited for the total amount.
• Completed production information is forwarded to the general ledger via a journal voucher and posted to the general ledger as cost of goods manufactured.
The completed production cost report is submitted by the cost accounting department
The LSP will decide the window timings for the suppliers for pickup of materials from dock their and unloading of truck at plant. On every production day, the trucks are available for 12 hours, but the working hours are only 10 (basic amenities). The timings are from 6.30 am to 6.30 pm. There are over 300 different components that are brought in via Milk Runs, from the 15 suppliers. The important thing of this model is:

• Whenever the term supplier is used, it should be understood as one of the 15 suppliers coming under the umbrella of Milk
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But Rastogi Ltd. still focuses on its prime business of construction which is considered to be main source of profit. Being a manufacturing company, it requires materials each day manufacturing of various equipment. The equipments are brought through Milk Runs.
This paper is an attempt to minimize the cost of milk run for Rastogi Ltd. construction manufacturer. The below system is mathematically modelled to minimize total time for milk runs.
In India, the concept of the third-party logistics is still at a growing stage. It looks to be developing in the recent years with analysts forecasting growth at a CAGR of 21.16% over the period of 2013-2018. India’s growth story is directly linked to infrastructure in the country. The work done to improve this has not been very impressive over the past many decades. This has ensured turtle speed growth for the Indian economy. It would be safe to say that due to insufficient growth in road and railway network logistics sector has consistently on a

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