Performance Improvement of Milk Run Transportation Routing Using a Saving Algorithm: a Case Study of a Company Importing and Distributing Electrical and Electronic Measuring Instruments

Abstract

This research article is a study of performance improvement of Milk Run transportation routing using a case study of a company importing and distributing electrical and electronic measuring instruments and Saving Algorithm. The objective is to propose guidelines for increasing the efficiency of transport routing in terms of total transport distance and fuel costs. This research collected both primary and secondary data. The researchers observed the work processes of the case study companies and used focus group of staffs within the logistics department. Moreover, the information on transportation routing from the firm's transportation summary reports was collected. The research results found that Vehicle 1 had the distance before improvement of 1,967.36 kilometers and the distance after improvement decreased by 464.73 kilometers accounting for 23.62 percent. Fuel cost before improvement was 5,890.26 baht/ month and the cost after improvement decreased by 1,391.41 baht/month accounting for 23.67 percent. Vehicle 2 had the distance before improvement of 1,838.77 kilometers and the distance after improvement decreased by 286.67 kilometers accounting for 15.59 percent. Fuel cost before improvement was 5,505.28 baht/month and the cost after improvement decreased by 865.29 baht/month accounting for 15.72 percent. Vehicle 3 had the distance before improvement of 3,991.31 kilometers and the distance after improvement decreased by 533.41 kilometers accounting for 13.36 percent. Fuel cost before improvement was 11,949.98 baht/month and the cost after improvement decreased by 1,597.03 baht/month accounting for 13.38 percent