the optimization of the transportation route for a public sector milk dairy in Madurai is carried out. In this firm, vehicles collect milk from various procurement points and finally reached the depot. When the firm can abbreviate the corresponding routing distance, then it will be able to provide better service and also the transportation costs can be reduced

1. OPTIMIZATION OF
TRANSPORTATION
COST IN DAIRY
INDUSTRY
PRESENTED BY,
K. THIRUPATHI RAJ
GUIDED BY,
DR. R. SIVASANKARAN

2. INTRODUCTION
A supply chain consists of organizations, people, resources
and information involved in moving a product or service
from supplier to customer.
Finding out the efficient vehicle routes is an important
logistics problem.
In food supply chain it is observed that the products have
very less life span and are easily perishable.
Transportation is a major issue in food supply chain. In this
work the optimization of transportation route for AAVIN
plant is carried out.

3. Cont.
The firm has a milk handling capacity of 300000 liters/day.
The only method of transportation used in this milk dairy is
by road.
In this firm, vehicles collects milk from different villages and
it is transported to plant. Thus transportation cost can be
reduced.
When the firm is able to effectively set milk procurement
route, then it will be able to provide better customer
service.

4. OBSERVATION FROM
LITERATURE REVIEW
These papers are primarily about the supply chain management in
dairy Industry
Distance optimization of milk transportation from dairy farms.
Planning and scheduling of make-and-pack dairy production.
Monitoring the hygiene of raw milk from farms to the retailers.
Vehicle routing approach for improvement in SCM of Milk Industry.
Strengthening the operational efficiency of dairy SCM in TN.
A hybrid algorithm for a class of vehicle routing problems.
Recent exact algorithms for solving the vehicle routing problem under
capacity and time window constraints.

5. RESEARCH GAP
Transportation time for raw milk from its origin to
process plant leads more due to transportation
difficulties and life time of the milk exploited
before reaching the process plant.

6. PROBLEM DESCRIPTION
In this firm, vehicles collects milk from different villages
and it is transported to plant. When the firm is able to
reduce length of delivery route, then it will be able to
provide better customer service and also the transportation
costs can be reduced, as cost reduction is the important
objective of every industry.

7. OBJECTIVES
To minimize the transportation cost by reducing
the travelling distance and utilizing the maximum
capacity of the vehicle.

8. COMPUTER AIDED TOOLS
 DATA ANALYTIC TOOLS
WEKA
R-STUDIO
 LINGO SOLVER
 MS-Excel

9. APPLICATIONS OF
ENGINEERING PRINCIPLES:
ROUTING:
◦ Vehicle Routing Problem (VRP) is a MTSP with capacity restriction of
the multiple vehicles coupled with varying demands at each node.
◦ It is an important problem in the fields of transportation, distribution
and logistics.
◦ Several variations and specializations of the vehicle routing problem
exist like VRP problems having time windows within which the
deliveries must be made and VRP with limited carrying capacity of
vehicles.

10. METHODOLOGY
K- Means Clustering
REFERENCE:
Minimization of Transportation Cost in Courier Service
Industry,International Journal of Innovative Research in
Science, Engineering and Technology,Volume 3, Special
Issue3, March 2014

11. METHODOLOGY
HUNGARIAN ALGORITHM:
◦ This method was originally invented for the best assignment of a set
of persons to a set of jobs.
◦ The algorithm finds an optimal assignment for a given “n x n” cost
matrix.
◦ “Assignment problems deal with the question how to assign n items
(e.g. jobs) to n machines (or workers) in the best possible way.

12. METHODOLOGY
The steps in Nearest neighbors are:
1) Start with a node at the beginning of the collection point.
2) Find the node closest to the last node and add to the
transportation network. If the closest node is already in the
network or already there in the path then select next
closest node.
3) Go to step 2 until all nodes have been added
4) Connect the first and the last node to form a complete
transportation network.

13. EXISTING DATA OF DAIRY INDUSTRY
oThere are two kind of milk collection vehicles 407 and 709 having
maximum capacity of 80 and 130 cans respectively.
oEach can hold upto 40 litre of milk.
oThere are 19 routes in this industry which procure from villages of
society channel.
oEach and every day procurement quantity of milk varies, So the
maximum quantity of the month should be considered for calculating
the capacity of the vehicle.
oMeanwhile distances of the 19 route is being collected from
transportation department.

14. DATA COLLECTION

15. DATA COLLECTION

16. PROGRAM USED IN LINGO
FOR ROUTING OF VEHICLES

17. S.no
Combination of
Procurement
points
Total
transportation cost
(Rs)
Number of
vechicles used
Cost reduction per
shift (Rs)
Cost minimization
per month (Rs)
1
Existing
transportation
cost
38,488 19 - -
2
using k-means
clustering
combination
35,323 17 3,166 1,89,960
CLUSTER VEHICLE TYPE
ACCUMLATED
CAPACITY(NO.OF TANKS)
ROUTING DISTANCE
(km)
DISTANCE TRAVEL
(Km)
COST PER
Km
TRANSPORTATION COST
(Rs)
1 709 118 102.5 205 14.5 2972.5
2 407 78 55 110 13 1430
3 709 129 77 154 14.5 2233
4 709 124 91 182 14.5 2639
5 407 74 87 174 13 2262
6 407 66 51 102 13 1326
7 407 67 79 158 13 2054
8 407 75 84.6 169.2 13 2199.6
9 709 126 84 168 14.5 2436
10 407 75 103.5 207 13 2691
11 407 77 69.8 139.6 13 1814.8
12 709 119 62 124 14.5 1798
13 407 76 49 98 13 1274
14 407 75 69 138 13 1794
15 407 77 67 134 13 1742
16 407 74 87.7 175.4 13 2280.2
17 407 77 91.4 182.8 13 2376.4

18. Distance travelled by trucks
per shift (proposed vs existing)

19. Transporation cost for trucks
per shift (proposed vs existing)
Existing 2184 1430 1885 2002 1846 1560 1560 2210 1798 1924 1950 1950 1595 1742 3480 2236 2470 2378 2288
Proposed 2972.5 1430 2233 2639 2262 1326 2054 2199.6 2436 2691 1814.8 1798 1274 1794 1742 2280.2 2376.4
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
2184
1430
1885
2002
1846
1560 1560
2210
1798
1924 1950 1950
1595
1742
3480
2236
2470
2378
2288
2972.5
1430
2233
2639
2262
1326
2054
2199.6
2436
2691
1814.8 1798
1274
1794 1742
2280.2
2376.4
0
500
1000
1500
2000
2500
3000
3500
4000
COST(RS)
VECHICLES
TRANSPORTATION COST FOR TRUCKS PER SHIFT

20. FUTURE WORK TO BE DONE
From the analysis it is found that the distance travelled by
vehicle is reduced by changing the route and transportation
cost is reduced
Interpretation of results is done for calculating the vehicle
maximum capacity planning
Abstract is sent for conference, paper is yet to be published.

21. Action plan
23
S.N
O
Content Dec Jan Feb Mar Apr
1 Literature Survey
2 Research
Methodology
3 Data Collection
4 Data Analysis
5 Conclusion &
Paper Publishment
Planned Activity
Actual Status of the Activity

22. REFERENCES
1. Anand Subramanian, Igor Machado, Luiz Satoru Ochic, 4 hybrid algorithm
for a class of vehicle routing problems with time window Computers &
Operations Research, Volume 40, Issue 10, October 2013, Pages 25192531
2. ÇağrıSela, Jacqueline Bloemh of-Ruwaard, Planning scheduling of the
make-and-pack dairy production under lifetime uncertainty Applied
Mathematical Modelling, Volume 51, November 2017, Pages 129-144
3. Clement Scaria, Jenson Joseph E.Optimization of Transportation Route for
a Milk Dairy-International journal of engineering in research and technology
(IJERT)ISSN:22780181, IJERTV3IS110577 Vol. 3 Issue 11, November-2014
4. Harisri.M.Thulasi, A.K.Agrawal,S.K.Sharma,vechiclerouting Approach for
improvement in the Supply Chain of Milk Industry Journal of Basic and
Applied Engineering Research.p-ISSN: 2350 0077; e-ISSN: 23500255 ;
Volume 3, Issue 8; April-June, 2016, pp.701-704.

23. REFERENCES
5. Khanitta Ruangwittayanusorn, Doungnapa Promket, AnutChantia tikul,
Monitoring the Hygiene of Raw Milk from Farms to Milk Retailers -
Agriculture and Agricultural Science Procedia, Volume 11, 2016, Pages 95-
99.
6. Mishra, P.K. and Raja Shekhar, B. (2012) Evaluating supply chain risk in
Indian dairy industry a case study. Int. J. Decision Sciences, Risk and
Management, Vol. 4,Nos. 1/2, pp. 77-91.
7. M.Subburaja T.Ramesh Babu, Suresh SubramoniaM Study on
Strengthening the Operational Efficiency of Dairy Supply Chain in
Tamilnadu, India- Procedia - Social and Behavioral Sciences, Volume 189, 15
May 2015, Pages 285-291
8. Roberto Baldacci, Aristide Mingozzi , Roberto Roberti, Recent exact
algorithms for solving the vehicle routing problem under capacity and time
window constraints-European Journal of Operational Research, Volume 218,
Issue 1, 1 April 2012, Pages 1-6