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To: From: Date: RE:

Francois Damba Aung Kyaw Moe 29 May 2013


Planning for Primary Distribution According to our learning materials, the nature of the movement can be split into two basic types. The first one is Primary movements which are those that involve typically bulk movements between two specific locations. For example, our movement from Mugla to Jumna is that kind of movement. Whatever type of movement may be, the main point is to achieve full utilization of resource used and minimization of the travelled distance and the hours drivers are paid for working. We should first consider for planning and scheduling of transportation between Jumna and Chagong warehouses. The following factors must be kept in mind for this primary level of distribution: 1. the maximisation of load carried We have to use the loading spaces of our vehicle as much as possible and all kind of loading must be complied with the international professional standards of practice 2. minimisation of distance travelled and its associated time We have to plan ahead which roads are the least distance and have good infrastructure in order to avoid unnecessary time consumption 3. the minimisation of time spent loading and unloading Most of the primary distributions are between main depot and sub-depots, so it is bulky cargo to be moved. Therefore, it is important to minimize loading and unloading time by using appropriate machinery (fork lift or conveyor belt) and enough manual labour and methods of loading and stacking It has been suggested that in order to have higher level of flexibility, we have to use more trailers for the tractors. In this regards, we can maximize the use of our trucks. The average ratio is 1.5 Trailers per tractor/truck. We decided to use 3 units of 20MT trucks, so we have to estimate for any extra cost related with the utilization the trailers. Our leaning material indicates that we can utilize 2 methods of organizing trunking operations as follows:

1. Relay Trunking in which two articulated vehicles travel regularly from different directions to an intermediate depot. 2. Balance Trunking in which is an alternative way of using two articulated vehicles to have an Intermediate transfer point. Cost of operation We have to estimate the following cost of operation for our primary distribution: Rental trucks charges Drivers daily wages and allowances Vehicle maintenance and repair costs Fuel and lubricant oil for vehicles Machinery for movement Manual labour charges for loading and unloading Fees for road and bridge usage

Planning for Secondary Distribution The other type of movement is that of Secondary distribution which relates to movements that may involve multiple deliveries within a defined area, such as a regional or local warehouse to extended delivery points. Our transport between Chagong and the refugee camps at the border area is that sort of movement. The second part of distribution is the transportation from Chagong warehouse to the refugee camps. This type of transportation requires multi-drop operations in which we have to manage relatively small amount of consignment. If there is a computerized system available to support our planning and scheduling, we can utilize that software which can help to manage effectively the operations involving a wide variety of routing and scheduling requirements. Using this computerized software, we can manage to arrange multi trip routes and multi day routes that may start in one location and end elsewhere, differentiate between multi drop or single drop trips, obtaining daily or weekly scheduling, creating schedules for deliveries and collections, drivers' work rosters and conformance to drivers' hours regulations. The important part of planning is the consideration about the General Constraints of our operation. As general constraints of our operations, we have to make ensured about the availability of drivers and their level of training and validity and type of licence held by the drivers. On top of that we have to make our vehicle fleet ready and calculate the best mixture of usages. In addition, in terms of Organization Characteristics, we need to check our organizations Service Policy and vehicle capacity target. If our vehicles are not enough to run the operation, we have to keep hand-on information about the ability to contract the additional resource from the rental market. Vehicles of transport are the major factors of our operation; therefore Vehicle and Fleet Characteristics are essential part of our operation management. We have to make sure the number of vehicles which are ready to use at any time. At the same time we have to monitor the level of performances of these vehicles in terms of speed and loading capacity. Sometimes, it is

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necessary to mix the type, dimensions and loading capacities of the vehicles in order for maximum utilization of our resources. For secondary distribution, what is also significant is the consideration about Delivery Points Characteristics. In our case, we have 3 refugee camps at Bagor, Nator and Parna and we must consider their locations and distances from Chagong. At the same time, the general features of these delivery points in terms of geographical positions, orientations, and restrictions to direct access should be taken into account. We have to take care about the time windows for delivery and requirement for return loads from the camps back to Chagong. In terms of Environmental Characteristics, we need to clarify ahead about the condition of roads and their availability and their closure. It was also suggested that because of security situation we need to keep 2 vehicles per convoy. The climatic conditions are also importance for scheduling transportation because sometimes in the rainy season, there could be flooding and land sliding on the roads that can hamper our transportation operations. Before distribution, we have to check with government and road administration authorities about whether there are any legal restrictions for time of operation and loading/weight of cargo. Based on the information we collected about the roads condition and environmental situations, we can select the best way to manage our operation of secondary distribution. Cost of operation Similar to primary distribution, we have to estimate the following cost of operation for our secondary distribution: Rental trucks charges if necessary to hire more trucks Drivers daily wages and allowances Vehicle maintenance and repair costs Fuel and lubricant oil for vehicles Fees for road and bridge usage Manual labour charges for loading and unloading at delivery points

Summarizing all we have said, what is the most important to be mindful of is (1) how to maximize vehicle payload and utilization (2) how to minimize the distance travelled and (3) how to fulfil the requirements of our programmatic needs for the beneficiaries at the camps. Our learning material indicates that there are three ways of general route configurations such as (1) Arc or Circumferential routes ( arc shape at various distances from main warehouse and delivery points) (2) Regional routes ( links drops in concentrated areas) and (3) Radial routes ( centred at main depot with various radial patterns). In our case, the routes between Chagong and three camps are much simpler and we can configure the routes serviced by each vehicle to and fro between Chagong and camps.

Aung Kyaw Moe Logistics Officer SCILaid Betaland

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