Managerial Decisions For Cost in Transportation: An Applying Integer Linear Programming Model

Managerial Decisions for Cost in Transportation:
An Applying Integer Linear Programming Model

Ahmet Ergülen – Halim Kazan
Global competition has imposed tremendous pressure on product and service providers
to transform and improve their operations and practices. Companies are responding to this
pressure by reengineering and streamlining their operations to serve better to their customers.
More specially, firms are involved in improving the performance of their supply chains
through various strategic and operational tools. One such strategy utilized by companies is to
concentrate on their core competencies in the transportation chain and outsource the other
functions. In essence firms are indulging in strategic organizational networks such as network
organizations, virtual corporations, and value-added partnerships. These supply chain
networks (SCNs) are considered as a solution for effectively meeting customer requirements
such as low costs, high product variety, high quality, and short lead times [1] ,[2] , [3], [4] .
The main purpose of transportation is to provide lower cost and higher speed, quality and
productivity.
This study shows that the distribution cost of products could be minimized with
Integer Linear Programming model, using tables of products, which would provide savings to
the firm and be in return to the distribution cost of a firm, in the distribution plan of the
logistic department of a firm (business) during the marketing activities in which competition
is important to all firms. The literature in this area can be broadly categorized into conceptual,
empirical, and quantitative frameworks for designing and operating SCNs. It is important to
note that in any area of study the conceptual models provide a strong foundation for
developing rigorous quantitative frameworks.
[5] Miles and Snow (1984) performed the initial work in the area of conceptual
network models. They introduced the concept of external groups, which they termed as
dynamic networks. According to them, a dynamic network is a combination of independent
business processes with each contributing what it does best to the network. [6] Later, Lawless
and Moore (1989) studied the application of dynamic networks in private and public
industries.
Managerial processes for designing, operating, and care-taking a network were
suggested by [7] Snow et al. and [8] Snow and Thomas. [9] Talluri S., R.C. Baker / European
Journal of Operational Research [10] Snow et al. illustrated three types of network
organizations: they are internal, stable, and dynamic. In an internal network, firms own most
of their assets in the business, and they do not become involved in outsourcing.
In the literature review, which is carried out, it has been observed that quantitative
methods related to decision-making used in relation to distribution problems. Some of these
studies done in this field are: A linear programming model for integrated steel production and
distribution planning ([11]. Optimizing Delivery Fees For a Network of Distributors [12]
“The model for Making the Distribution Strategies of Businesses: A Sample Application
Study on Eastern and Northern Provinces of Turkey which has difficult conditions for
Ahmet Ergülen, Associate professor, School of Business Administration in Nigde University

NİGDE/TÜRKİYE
Halim Kazan, Associate professor, Faculty Of Business Administration in Gebze Institute Of Technology
Gebze-Kocaeli/TÜRKİYE
1
distribution ([13]. Moreover, linear programming techniques have great attraction. Including
all sorts of production such as transportation, energy and telecommunication they have been
successfully used in many sector ([14]. [15] Durhan and others pointed out that minimizing
transportation cost is important in developing various pricing strategies against rival firms
during marketing activities and this is one of the main factors which is effective in improving
the general financial structure of a firm.
It is a known fact that transportation costs are important in business. Therefore many
studies related to minimizing transportation cost have been done. Among these studies an
important part is about Vehicle Rotating Problem.
Vehicle Rotating Problems are the problems of planning optimal distribution
of/storing of vehicles which are given the job of serving to geographically dispersed centres
from one or more tanks to one tanks. The issue of distribution of consumption products from
factories to wholesalers is a good sample problem for VTP, which makes the problem easily
understood. In these example factories are supply-centres and wholesalers are demand-
centres.
The studies in the literature related to this topic include modelling VRP problems with
different characteristics, using different solution algorithms in searching optimum solution for
these problems and doing application studies for the solution of problems in real life.
A problem could be defined as a difference between a present existing situation and a
satisfactorily expected situation.
This study suggests an integer linear model which fits to the amount of demands in the
problem of continuously transporting goods from a factory to many wholesalers by vehicles
with different capacities and applies the suggested model to a firm.
Methodology and Data selection

As discussed earlier, we utilize a two phase approach in our methodology. Phase I
evaluates potential suppliers, manufacturers, and distributors in determining their efficiencies
with respect to resources consumed and outputs generated. Phase II involves the application
of an integer programming model, which optimally selects candidates for SCN design by
integrating the efficiencies identified in phase I, demand and capacity requirements, and
location limits. Phases I and II essentially identify the candidates that need to be selected for
the network. The data utilized in this paper is obtained from previously firm’s data sets and by
random number generation from predefined distribution.
The Suggested Model

This study suggests a mixed integer linear programming models could be used for
vehicle rotating problems similar to a situation where goods are continuously transported
from a factory to many wholesalers and where the demand of whole sealers are blur. The
suggested model is as follows:
If we evaluate it in the conditions of nowadays, minimizing transportation costs will have the
advantages such as:
1. Providing competition superiority in terms of cost and time in distribution.
2. Providing flexibility in the price policies which would be developed.
3. Making more healthy logistic and financial policies possible.
2
In businesses, this type of studies is meaningful as long as it meets a need or solves a
problem. In other words, It is an effort to determine the need(s) which are necessary to reach
from the present situation to the goal which is desired to be realized. Solution is an activity of
meeting the needs which are determined or and of solving the problems which are
encountered.
In this study, the Integer Linear Programming model for minimizing distribution
cost of a firm could be formulated as follows.
m n
Z min (d ij X ij ri Yi ) i = 1,2,...,m (m: the number of sorts of vehicle)
i 1 j 1
j = 1,2,...,n (n: number of regions)

(Limit to the amount of mobilization)
n
(aij X ij ci Yi ) ti i=1,2,...,m (m: the number of sorts of vehicle)
j 1
j=1,2,...,n (n: the number of regions will be distributed [1]

(Limit to loading of goods which will be distributed)
m
f i X ij hk i=1,2,...,m (m: the number of sorts of vehicle)
i 1
j=1,2,...,n (n: the number of regions will be distributed)

k=1,2,...,n (n: loading values belong to the regions) [2]
Condition of Positivity
X ij 0 and integer number Yi 0 and integer number
Here, i shows the vehicle type and j, the region to where the vehicle will
mobilize
In the Equation of aim/target/purpose

The parameters which are used
d ij : The cost of per mobilization of i type vehicle to j region
ri : The cost of hiring an i type vehicle for 10 days.

Decision Variables
X ij : The number of mobilization of i type vehicle to j region
Yi : Numbers of i type vehicle which will be hired

It is stated
[1] In Limit 1
The parameters used
3
aij : The time needed by an i type vehicle to mobilize to j region
c i : working hours/time of a hired vehicle during ten days
t i : working hours/time of an i type vehicle of the firm during ten days

Decision Variables
X ij : Number of mobilization to j region by i type vehicle
Yi : Numbers of i type vehicle which will be hired

It is stated
[2] The parameters used in the limit 2

The parameters used,
f i : The load capacity of an i type vehicle
hk : The amount of load which will be sent to k region

Decision Variables
X ij : Number of mobilization by i type vehicle to j region,
It is determined.
In the general model of Integer Linear Programming, plans which fit to the distribution
plan of the firm and prepared with the special value of the firm could be made. This also
could be used a solution for the other firms that have the same or similar problem. Here, when
solving the problem for special values, the different constitution of the limits that fit to the
problems of firms shapes the general model differently.
The importance of this study is to encourage firms in Turkey to make plan at every
stage of their activities from production to consumption by using scientific techniques.
In the decision problem, which is considered here, the distribution costs of the firms
have been found as variables by using loading values of the regions to where the logistic
department of the firm delivered products and the tables of price per kg in transportation.
Moreover, the new distribution costs of products have been found in ILP model, as the
equivalent of the distribution cost of the firm, using tables of products distributed. Then the
comparison of the distribution costs has shown that the distribution cost is minimized.
Applying the Model to a Food Business

The Model was applied to solve the distribution problem of a product, produced in a
factory in Adana province, distributed to wholesalers located in eleven areas: 1.Diyarbakır,
2.Erzurum, 3.Hatay, 4.Kastamonu, 5.Malatya, 6.Mardin, 7.Mersin, 8.Samsun, 9.Sivas,
10.Tokat and 11.Trabzon provinces. Duration was considered ten days period from January to
December. Vehicles characteristic of the firms was given in Table 1. Demand amounts, going
and coming cost and time of a vehicle from plant to distributors were given in Table 2. About
per mobilization costs were given in Table 3. In addition to, vehicles type and parameters of
per mobilizations were explained in appendixes 1
4
Tab. 1: Vehicles used by the firm
(The type of Vehicle) (i) Numbers The total working

of capacity of
(The Loading capacity) Vehicle
Vehicles Vehicles(hour)
Type No
13 Ton 1 42 30240
20 Ton 2 24 17280
25 Ton 3 9 6480
Source: Author
5
Tab. 2a: The amount of demands by wholesalers and costs for per delivery
Cost for per delivery of the vehicles.
j
13 Ton i=1 20 Ton i=2 25 Ton i=3
143598 220920 276150

1 Diyarbakır 16,00
2 Erzurum 24,00 296725 456500 570625
3 Hatay 6,00 62491 96140 120175
4 Kastamonu 18,46 235534 362360 452950
5 Malatya 12,00 136994 210760 263450
6 Mardin 16,00 143598 220920 276150
7 Mersin 2,18 41990 64600 80750
8 Samsun 20,00 236899 364460 455575
9 Sivas 15,00 140920 216800 271000
10 Tokat 17,14 182247 280380 350475
11 Trabzon 26,66 296855 456700 570875
Source: Author
6
Tab. 2b: The amount of demands by wholesalers
MONTHS Diyarbakır Erzurum
1.10 2.10 3.10 T 1.10 2.10 3.10 T
JANUARY 77851 176933 217038 471.822 22109 50248 61638 133995
FEBRUARY 40470 91978 112826 245.274 39278 89269 109503 238050
MARCH 57825 131420 161208 350.452 29711 67525 82830 180066
APRIL 53958 122633 150429 327.020 39744 90326 110800 240870
MAY 39592 89981 110377 239.950 46606 105922 129931 282459
JUNE 60970 138568 169977 369.515 30731 69844 85675 186250
JULY 55564 126281 154905 336.750 18955 43080 52845 114880
AUGUST 71145 161693 198343 431.181 31612 71846 88130 191588
SEPTEM. 89219 202770 248731 540.720 51602 117278 143861 312742
OCTOBER 93468 212426 260576 566.470 44837 101903 125000 271740
NOVEMBER 93828 213245 261581 568.654 51516 117083 143622 312221
DECEMBER 49789 113157 138805 301.751 24009 54566 66934 145509
TOTAL 783677 1781085 2184797 4.749.559 430711 978889 1200770 2610370
Source: Author
7
Tab. 2c: The amount of demands by wholesalers
MONTHS Hatay Kastamonu
1.10 2.10 3.10 T 1.10 2.10 3.10 T
JANUARY 14687 33379 40945 89.011 10398 23633 28989 63.020
FEBRUARY 12261 27866 34183 74.310 17785 40421 49583 107.789
MARCH 15014 34123 41857 90.994 10754 24442 29982 65.178
APRIL 3409 7748 9504 20.661 13814 31395 38511 83.720
MAY 13272 30163 37000 80.435 9601 21821 26767 58.189
JUNE 6679 15180 18621 40.480 11609 26383 32363 70.355
JULY 16151 36707 45027 97.885 9695 22034 27029 58.758
AUGUST 9936 22581 27699 60.216 12251 27842 34153 74.246
SEPTEMBER 17604 40009 49078 106.691 13318 30269 37130 80.717
OCTOBER 17371 39480 48429 105.280 14345 32602 39991 86.938
NOVEMBER 18539 42134 51684 112.357 15870 36067 44242 96.179
DECEMBER 10686 24287 29791 64764 9590 21795 26735 58120
TOTAL 1556089 353657 433819 943084 1490305 338703 415476 903209
Source: Author
8
Tab. 2d: The amount of demands by wholesalers
MONTHS Malatya Mardin
1.10 2.10 3.10 T 1.10 2.10 3.10 T
JANUARY 6599 14999 18398 39.996 61938 140768 172675 375.381
FEBRUARY 14562 33095 40597 88.254 65142 148051 181609 394.802
MARCH 17355 39443 48383 105.181 65701 149321 183166 398.188
APRIL 20437 46448 56976 123.861 81307 184788 226674 492.769
MAY 18884 42919 52647 114.450 89387 203153 249200 541.740
JUNE 16733 38029 46649 101.410 85883 195188 239431 520.502
JULY 13126 29832 36594 79.552 75008 170473 209113 454.594
AUGUST 12635 28717 35226 76.578 73895 167942 206009 447.846
SEPTEMBER
19037 43266 53073 115.376 103900 236136 289660 629.696
OCTOBER
21648 49201 60353 131.202 103039 234179 287259 624.477
NOVEMBER 19245 43739 53653 116.638 99574 226304 277600 603.478
DECEMBER 11233 25530 31317 68.080 84522 192096 235638 512.256
TOTAL 91495435217 533866 1160578 989295 2248398 2758035 5995729
Source: Author
9
Tab. 2e: The amount of demands by wholesalers
MONTHS Mersin Samsun
1.10 2.10 3.10 T 1.10 2.10 3.10 T
JANUARY 30720 69819 85645 186.184 31370 71296 87456 190.122
FEBRUARY 48428 110063 135011 293.502 23707 53880 66092 143.679
MARCH 30690 69751 85561 186.002 10516 23900 29318 63.734
APRIL 39904 90690 111246 241.840 27476 62445 76599 166.520
MAY 31347 71243 87392 189.982 22224 50509 61957 134.690
JUNE 32068 72881 89401 194.350 19091 43388 53223 115.702
JULY 38985 88603 108686 236.274 23403 53189 65245 141.837
AUGUST 34515 78444 96225 209.184 32952 74891 91866 199.709
SEPTEMBER 37886 86105 105622 229.613 29963 68097 83532 181.592
OCTOBER 30274 68804 84399 183.477 36606 83196 102054 221.856
NOVEMBER 34583 78597 96412 209.592 34821 79139 97077 211.037
DECEMBER 29469 66976 82157 178.602 17515 39807 48830 106.152
TOTAL 418869 951976 1167757 2.538.602 309644 703736 863250 1.876.630
Source: Author
10
Tab. 2.f: The amount of demands by wholesalers
MONTHS Sivas Tokat
1.10 2.10 3.10 T 1.10 2.10 3.10 T
JANUARY 26758 60815 74599 162172 30984 70418 86379 187781
FEBRUARY 28131 63934 78425 170490 37233 84620 103801 225654
MARCH 25403 57735 70822 153960 28627 65061 79808 173496
APRIL 27181 61776 75778 164735 28346 64422 79024 171792
MAY 22422 50959 62509 135890 26387 59970 73563 159920
JUNE 29394 66806 81948 178148 29710 67523 82828 180061
JULY 25891 58844 72182 156917 28999 65907 80846 175752
AUGUST 27807 63198 77523 168528 31776 72218 88588 192582
SEPTEMBER 26995 61352 75258 163605 40428 91881 112707 245016
OCTOBER 37256 84673 103865 225794 35765 81284 99709 216758
NOVEMBER 36199 82270 100918 219387 31161 70820 86872 188853
DECEMBER 30635 69624 85405 185664 38291 87024 106749 232064
TOTAL 344073 781984 959233 2085290 387705 881148 1080875 2349729
Source: Author
11
Tab. 2g: The amount of demands by wholesalers
MONTHS Trabzon
1.10 gün 2.10 gün 3.10 gün T
JANUARY 7752 17618 21611 46981
FEBRUARY 26153 59438 72910 158501
MARCH 12178 27678 33952 73808
APRIL 9257 21038 25806 56101
MAY 15606 35468 43507 94581
JUNE 10052 22845 28023 60920
JULY 10163 23099 28334 61596
AUGUST 19166 43559 53432 116157
SEPTEMBER 15024 34145 41885 91054
OCTOBER 11065 25148 30848 67060
NOVEMBER 18666 42422 52038 113126
DECEMBER 1990 4523 5548 12061
TOTAL 157071 356980 437895 951946
Values were taken by being ton. Vehicles have air conditioner and 13 tons.
Source: Author
12
Tab. 3a: The cost for per delivery by being Kg and Km coming from demand centres
Diyarbakır Erzurum Hatay

MONTHS MONTHS MONTHS
Price of Price of Price of Price of Price of Price of

Kg Km Kg Km Kg Km
JANUARY 11046 275.623 JANUARY 22825 357.943 JANUARY 4807 327.225
FEBRUARY 11046 275.623 FEBRUARY 22825 299.275 FEBRUARY 4807 327.225
MARCH 11874 296.295 MARCH 24537 321.721 MARCH 5168 351.767
APRIL 11874 296.295 APRİL 24537 321.721 APRİL 5168 351.767
MAY 11874 296.295 MAY 24537 321.721 MAY 5168 351.767
JUNE 12765 318.517 JUNE 26377 345.850 JUNE 5556 378.150
JULY 13722 342.406 JULY 28356 371.789 JULY 5972 406.511
AUGUST 14751 368.086 AUGUST 30482 399.673 AUGUST 6420 436.999
SEPTEMBER 14751 368.086 SEPTEMBER 30482 399.673 SEPTEMBER 6420 436.999
OCTOBER 14751 368.086 OCTOBER 30482 399.673 OCTOBER 6420 436.999
NOVEMBER 15857 395.692 NOVEMBER 32768 429.648 NOVEMBER 6902 469.774
DECEMBER 15857 395.692 DECEMBER 32768 429.648 DECEMBER 6902 469.774
Source: Author
13
Tab. 3b: The cost for per delivery by being Kg and Km coming from demand centres
Diyarbakır Erzurum Hatay

Price of Price of Price of Price of Price of Price of

Kg Km Kg Km Kg Km
MAY 11874 296.295 MAY 24537 321.721 MAY 5168 351.767
JUNE 12765 318.517 JUNE 26377 345.850 JUNE 5556 378.150
JULY 13722 342.406 JULY 28356 371.789 JULY 5972 406.511
SEPTEMBER 14751 368.086 SEPTEMBER 30482 399.673 SEPTEMBER 6420 436.999
Source: Author
14
Tab. 3c: The cost for per delivery by being Kg and Km coming from demand centres
Mersin Samsun Sivas

Price Price of Price of Price of Price of Price of

of Kg Km Kg Km Kg Km
MAY 3472 654.347 MAY 19590 340.930 MAY 11653 302.379
JUNE 3732 703.423 JUNE 21059 366.500 JUNE 12527 325.057
JULY 4012 756.180 JULY 22639 393.987 JULY 13466 349.437
SEPTEM. 4313 812.893 SEPTEM. 24337 423.536 SEPTEM. 14476 375.644
Source: Author
15
Tab. 3d: The cost for per delivery by being Kg and Km coming from demand centres
Tokat Trabzon
MONTHS MONTHS
Price of Kg Price of Km Price of Kg Price of Km
JANUARY 14019 299.275 JANUARY 22835 305.727
FEBRUARY 14019 299.275 FEBRUARY 22835 305.727
MARCH 15070 321.721 MARCH 24548 328.657
APRIL 15070 321.721 APRIL 24548 328.657
MAY 15070 321.721 MAY 24548 328.657
JUNE 16200 345.850 JUNE 26389 353.306
JULY 17415 371.789 JULY 28368 379.804
AUGUST 18721 399.673 AUGUST 30496 408.290
SEPTEMBER 18721 399.673 SEPTEMBER 30496 408.290
OCTOBER 18721 399.673 OCTOBER 30496 408.290
NOVEMBER 20125 429.648 NOVEMBER 32783 438.912
DECEMBER 20125 429.648 DECEMBER 32783 438.912
Source: Author
16
Using the data in Table 1, 2 and 3, the application of the model leads to the Integer
Linear Programming model shown below.
Goal Equation
January-February Monthly
Z min 143598X 11 296725X 12 62491X 13 235534X 14 136994X 15
143598X 16 41990X 17 236899X 18 140920X 19 182247X 110
296855X 111 220920X 21 456500X 22 96140X 23 362360X 24
210760X 25 220920X 26 64600X 27 364460X 28 216800X 29
280380X 210 456700X 211 276150X 31 570625X 32 120175X 33
452950X 34 263450X 35 276150X 36 80750X 37 455575X 38
271000X 39 350475X 310 570875X 311 130000Y1 200000Y2
250000Y3
Limit to the working capacity of vehicles

16 X 11 24 X 12 6 X 13 18,46 X 14 12 X 15 16 X 16 2,18 X 17
20 X 18 15 X 19 17,14 X 110 26,66 X 111 720Y1 30240
16 X 21 24 X 22 6 X 23 18,46 X 24 12 X 25 16 X 26 2,18 X 27
20 X 28 15 X 29 17,14 X 210 26,66 X 211 720Y2 17280
16 X 31 24 X 32 6 X 33 18,46 X 34 12 X 35 16 X 36 2,18 X 37
20 X 38 15 X 39 17,14 X 310 26,66 X 311 720Y3 6480
Limit to the demand of wholesalers
13 X 11 20 X 21 25 X 31 loaing, 13 X 12 20 X 22 25 X 32 loading
13 X 13 20 X 23 25 X 33 loading, 13 X 14 20 X 24 25 X 34 loading
13 X 111 20 X 211 25 X 311 loading
Here, the distribution cost is found by optimal solution reached by WINQSB package
program of the model. Table 4 shows the annual distribution cost of the model.
17
Tab. 4: The annual cost of delivery for the Model
Total cost yearly belong to Model 404.762,340
Total loading yearly belong to Model 26.164.727
Total mobilization numbers yearly belong to Model 1530

The amount of loading was taken as a ton, the cost was taken as TL
Source: Author
Moreover, in the distribution of the product, the firm used vehicles with air conditioner hired
from a transpiration firm. The products delivered were margarine and liquid oil, therefore
vehicles with air conditioner preferred.
According to the finding, relation to the distribution cost of the firm; The tables from
2b to 2f shows Annual distribution amount of the delivered products to wholesalers. The
tables from 3a to 3d shows prices as a kg and a km for per delivery of the products which
delivered to wholesalers.
Table 5: The annual cost of delivery for the firm
Total cost yearly belong to firm 447.547,099
Total loading yearly belong to firm 26.164.727
Total mobilization numbers yearly belong to firm 2218

The amount of loading was taken as a ton, the cost was taken as TL
Source: Author
Conclusion
The firm we used in this study has been using its own transportation methods. It is said by the
authorities that these methods did not provide so much advantages. Therefore, to carry the
products produced by the firm from production centres to consumption centres and to reduce
the cost, our model has been suggested. As it has been seen, at the end of the application,
42.784,759 TL costs has been reduced. When these two transportation methods are compared,
it has been seen that our method is better. The distribution cost of our model has 9.56% more
advantage than the distribution cost of the firm. The limit of this study is that the general use
of this model in different conditions and in different situation of firms such as marketing and
competition can be discussed.
18
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19
MANAGERIAL DECISIONS FOR COST IN TRANSPORTATION: AN
APPLYING INTEGER LINEAR PROGRAMMING MODEL
Ahmet Ergülen – Halim Kazan
ABSTRACT
Managers in the firms are required to make several short and long term decisions. Such
decisions for small firms are generally related with stocks and pricing policies and for big
firms, such decisions are mostly related with production, investment, financing, stoking, and
pricing the stock, employment and transportation policies. The most important element of the
decision is uncertainty. As such, setting up mathematical models based on actual data to sort
out the problems plays an important role in decision making process. The aim of this study is
to set up a model to minimize distribution costs related with transportation policy which is off
particular importance for the firms that are operating in the rather competitive environment.
The results of this study suggest that financing structure of firms can be improved by using
models. This model provides an alternative to the distribution system of the firm. While the
cost results were compared with the annual solution of the model and of the firm, cost
minimization was seen in annual distribution of the products.
Key Words: MMT; ILP and LP
JEL Classification: G30
20
Ek-1: Explanations for variables of Types of Vehicle and of regions to where products
delivered.
Variables Explaining Variables

X 11 : Total numbers of delivery to Diyarbakır by vehicles with 13 tons of loading capacity
X 12 : Total numbers of delivery to Erzurum by vehicles with 13 tons of loading capacity
X 13 : Total numbers of delivery to Hatay by vehicles with 13 tons of loading capacity
X 14 : Total numbers of delivery to Kastomonu by vehicles with 13 tons of loading capacity

X 15 : Total numbers of delivery to Malatyaby vehicles with 13 tons of loading capacity
X 16 : Total numbers of delivery to Mardin by vehicles with 13 tons of loading capacity
X 17 : Total numbers of delivery to Mersin by vehicles with 13 tons of loading capacity
X 18 : Total numbers of delivery to Samsun by vehicles with 13 tons of loading capacity
X 19 : Total numbers of delivery to Sivas by vehicles with 13 tons of loading capacity
X 110 : Total numbers of delivery to Tokat by vehicles with 13 tons of loading capacity
X 111 : Total numbers of delivery to Trabzon by vehicles with 13 tons of loading capacity
Y1 : The numbers of vehicles with 13 tons of loading capacity, which will be leased
X 24 : Total numbers of delivery to Kastamonu by vehicles with 20 tons of loading capacity

X 25 : Total numbers of delivery to Malatya by vehicles with 20 tons of loading capacity
21
X 34 : Total numbers of delivery to Kastamonu by vehicles with 25 tons of loading capacity
X 35 : Total numbers of delivery to Malatya by vehicles with 25 tons of loading capacity

22

Managerial Decisions For Cost in Transportation: An Applying Integer Linear Programming Model

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Managerial Decisions For Cost in Transportation: An Applying Integer Linear Programming Model

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Managerial Decisions for Cost in Transportation:

An Applying Integer Linear Programming Model

Ahmet Ergülen, Associate professor, School of Business Administration in Nigde University

Methodology and Data selection

The Suggested Model

j = 1,2,...,n (n: number of regions)

j=1,2,...,n (n: the number of regions will be distributed [1]

j=1,2,...,n (n: the number of regions will be distributed)

In the Equation of aim/target/purpose

ri : The cost of hiring an i type vehicle for 10 days.

Yi : Numbers of i type vehicle which will be hired

c i : working hours/time of a hired vehicle during ten days

t i : working hours/time of an i type vehicle of the firm during ten days

Yi : Numbers of i type vehicle which will be hired

[2] The parameters used in the limit 2

hk : The amount of load which will be sent to k region

Applying the Model to a Food Business

(The type of Vehicle) (i) Numbers The total working

Cost for per delivery of the vehicles.

143598 220920 276150

2 Erzurum 24,00 296725 456500 570625

3 Hatay 6,00 62491 96140 120175

4 Kastamonu 18,46 235534 362360 452950

5 Malatya 12,00 136994 210760 263450

6 Mardin 16,00 143598 220920 276150

7 Mersin 2,18 41990 64600 80750

8 Samsun 20,00 236899 364460 455575

9 Sivas 15,00 140920 216800 271000

10 Tokat 17,14 182247 280380 350475

11 Trabzon 26,66 296855 456700 570875

MONTHS Diyarbakır Erzurum

1.10 2.10 3.10 T 1.10 2.10 3.10 T

JANUARY 77851 176933 217038 471.822 22109 50248 61638 133995

FEBRUARY 40470 91978 112826 245.274 39278 89269 109503 238050

MARCH 57825 131420 161208 350.452 29711 67525 82830 180066

APRIL 53958 122633 150429 327.020 39744 90326 110800 240870

MAY 39592 89981 110377 239.950 46606 105922 129931 282459

JUNE 60970 138568 169977 369.515 30731 69844 85675 186250

JULY 55564 126281 154905 336.750 18955 43080 52845 114880

AUGUST 71145 161693 198343 431.181 31612 71846 88130 191588

SEPTEM. 89219 202770 248731 540.720 51602 117278 143861 312742

OCTOBER 93468 212426 260576 566.470 44837 101903 125000 271740

NOVEMBER 93828 213245 261581 568.654 51516 117083 143622 312221

DECEMBER 49789 113157 138805 301.751 24009 54566 66934 145509

TOTAL 783677 1781085 2184797 4.749.559 430711 978889 1200770 2610370

MONTHS Hatay Kastamonu

1.10 2.10 3.10 T 1.10 2.10 3.10 T

JANUARY 14687 33379 40945 89.011 10398 23633 28989 63.020

FEBRUARY 12261 27866 34183 74.310 17785 40421 49583 107.789

MARCH 15014 34123 41857 90.994 10754 24442 29982 65.178

APRIL 3409 7748 9504 20.661 13814 31395 38511 83.720

MAY 13272 30163 37000 80.435 9601 21821 26767 58.189

JUNE 6679 15180 18621 40.480 11609 26383 32363 70.355

JULY 16151 36707 45027 97.885 9695 22034 27029 58.758

AUGUST 9936 22581 27699 60.216 12251 27842 34153 74.246

SEPTEMBER 17604 40009 49078 106.691 13318 30269 37130 80.717

OCTOBER 17371 39480 48429 105.280 14345 32602 39991 86.938

NOVEMBER 18539 42134 51684 112.357 15870 36067 44242 96.179

DECEMBER 10686 24287 29791 64764 9590 21795 26735 58120

TOTAL 1556089 353657 433819 943084 1490305 338703 415476 903209

MONTHS Malatya Mardin

1.10 2.10 3.10 T 1.10 2.10 3.10 T

JANUARY 6599 14999 18398 39.996 61938 140768 172675 375.381