ZeNXL express logistics: route optimization

Abstract

Learning outcomes

This case has four major learning outcomes using hands-on spreadsheet tool. First is to introduce and apply the Clarke and Wright’s Savings algorithm. Second is to conduct a cost-benefit analysis in transportation set up. Third is to find out the optimal route to be taken to fulfill given demand while satisfying time and capacity constraints. Finally, one has to optimize the number of vehicles required for daily operations.

Case overview/synopsis

Dhruvam, the protagonist of the case, working at ZeNXL, a third-party logistics service provider, was assigned the task of reducing the operational cost of the company as part of the new service offering called “Route optimization.” This new offering would help optimize vehicle delivery routes to meet daily customer demand. The launch of the new service offering was due in the next 10 days with client LG Electronics to be the first beneficiary.

Complexity academic level

MBA-1 (Logistics Management), MBA-2 (Route Optimization). This case provides an opportunity for instructors to introduce vehicle routing and scheduling as part of logistics management. Students are expected to use the data given in the case and exhibits to develop the optimal routes (using Clarke and Wright’s Savings algorithm) and conduct cost-benefit analysis. This case also provides insights on the challenges associated with start-up operations.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 9: Operations and Logistics

Citation

Dhaigude, A.S., Ray, S. and Konwar, D. (2019), "ZeNXL express logistics: route optimization", , Vol. 9 No. 2. https://doi.org/10.1108/EEMCS-05-2019-0134