ANNEXURE-A

(i) SCENARIO I : FOR MILK PROCUREMENT TRANSPORATION IN VILLAGES:

In the current scenario Milk Unions contract transporters for transporting raw milk from
villages (pick up PQints/sources) to the chilling centers/dairy plants (drQP pointS/sinks) using
their fleet of trucks (may be 5 -10 types of trucks with varying capacities available).

All trucks start from the chilling centers/dairy plants (CCIDP) and come back to the same spot;
each truck can make maximum two tours per day. Only a single truck would visit a particular
pick up point.
There is some expected procurement volumes at each pick up point and based on that certain
numbers of ,trucks are sent to these pick up points spread across their operational area. These
volumes mainly change twice a year, depending on the season (summer and winter) and any
cl)ange in between requires you to notify your transporters to alter routes of trucks accordingly.

In a medium size union , you may expect to have around 800 pickup points and 4-6
Chilling Centre/Dairy Plants.
(ii) SCENARIO n: FOR MILK DISTRIBUTION TRANSPORATION IN CITIESj
In the current scenario Milk Unions contract transporters for transporting processed milk from
dairy plants/chilling centres
(depots/sources) to the milk parlourS/shops in the city (drop
points/sinks) using their fleet oftruc~s (may be 5 -10 types of trucks with varying capacities
available).

All trucks start from the c,hilling , centers/dairy plants (CCIDP) with milk crates containing
milk/products in pouches and come back with empty milk crates; each truck can make maximum
two tours per day. Only a single truck would visit a particular drop point.

There is some expected sale volumes at each drop points in morning as well as evening and
based on that certain numbers of trucks are sent to that drop point. These volumes do not
change much during the year, rather it is a slow change depending upon the Union's growth
strategies.

In a medium size union , you may expect to have around 3000 drop points (milk
parlours/shops) in their main city/metro for each Writing dairy plant/chilling centre.
For both the above scenariQs, our goal is to have:
(a) Most efficient use offleet oftranspcirters with each truck taking the most optimal route
(b) Maximize number of litres of milk per km for the fleet and/or minimise transportation cost
per litre (key prodUCtivity index)
Among others, the main business constraints include:

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(a) Distance & time constraints, per truck trip duration has to be within 5 hours (milk gets
spoilt if it is delayed for more than 5 hOl/Ts from milking cows to deep freezing it, prior to
processing.f) from the moment it starts procuring milk from pick up points and then arrive at
CCiDP (so earliest start up time & latest arrival times at each CCIDP is imporatrtt) in case of
milk procurement operations. In case of milk distribution, it should reach each of the drop
points within a specific time period so that consumers can buy f\lilk.
(b) Capacity constraints of each truck

(c) Milk handling capacities of each Chilling CentreIDairy Plant (not all vehicles can come at
the same time in the same CCIDP in case of milk procurement operations).
(d) Time windows at each pick up points/drop points. In case of'milk distribution operations
milk needs to be dropped at the drop points at specific times by the assigned truck. In case of
milk procurement operations, the milk needs to be picked up by the assigned truck at specific
.times.

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(e) Rates quoted by transporting agency for the particular size of vehicle plying in that area
either in terms of per KM, total KMs flat rate for the month or any other combination.
PRESENT WORKING:
Presently at each pick up point/drop point, truck dispatch is being done manually by planners.
Currently at each CCIDP, some planners manually send out trucks to pick up points/drop
points, after some random interval (this is to ensure that they do not arrive all together on return)
'and they use the heuristic to visit farthest pickup point/drop point first. This. heuristic might not
be the best for Milk Union's business and can't guarantee optimal routes.
As a result trucks may be traveling greater distances, leading to missing of time windows in
some cases. This is leading to long routes with possibly long loading and unloading delays and
even usage of more than required fleet.
Also the types of trucks to be selected are completely manual. This. is causing Milk Unions to
incur a heavy expense (ordinarily as much as 10-15% of their turnover is already being spent on
raw milk transportation cost).

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Item wise Requirements for GIS based Route Optimization System

(1) Must generate optimal route solutions which gUarantees highest level of the key productivity
index i.e. volume of milk per KM traveled for the entire operational area of the Union
and/or cost per liter of milk transportation.
(2) When dispatching trucks, users can select the most optimal trucks from the fleet using
optimization libraries and dispatch them in sequence which ensures least waiting time for
them at the pickup/drop points and delivery/sourcing point.

(3) Users can visualize the optimal routes on existing digital maps and allow them what-if
analysis and get visibility into the dispatch process/gantt charts. They may also see the
optimal routes with their stops & milk volume details,
distances,. times as a
spreadsheet/table; ready for print out.

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