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Present ByGroup 4
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Anand Model
Baroda co-operative union
Milk Collection
Vehicle Routing
Problem
Solution
Questions
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Each village forms a co-operative
society of all farmers who had milksurplus.
All the village co-operative societies
in a district would form a Union.
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Set up in the late 1960s in Vadodara based on Anand
Model.
Membership of 700 village-level co-operatives spread all
over the district.
Collect Milk from 700 societies twice a day, 365 days for
a year.
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Milk are collected from 700 co-operative societies in the
district twice a day
Milk are collected in cans through tempos/truck
Each tempo holds 100 cans and each can holds 40 litres
of milk
From milking to processing should be done within 7
hours to prevent milk from curdling.
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Transportation cost accounts 17.5% of cost for 1 litre of
milk
44 routes cover 700 co-operative societies in the district
44 trucks/tempos are hired for collecting milk from 700
societies on contract basis.
Trucks/tempos collect milk from societies and deliver in
Bodeli or Chilling Centre within a total time of 7 hours
between milking and processing.
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Baroda union paying less price to the farmers than its
neighboring unions like Kheda and Valsad.
Transportation cost accounts around 17.5% of price per
litre milk
Collecting milk individually from 700 societies consumesmore time as it leads milk to curdle.
Wastage of 5% milk and production decrease in summer
season results more expense.
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Reduce collecting point from 700 co-operative
societies to 33 pickup points
Use chilling centres in between the routes that
requires more time to transport milk from
loading points to Processing centre
Use effective routing so that tempos are used
at its maximum level to collect milk
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TravelDistan
ce
Travel
Time
Travel
Timein
Mins
Pickup
Point
Societies
TotalWaiting
Time
Unloading Time
TotalTime
TotalTime InHours
Route52
75 2.5 150 5 11 55 25 230 3.83
Route54
65 2.17 130 6 15 75 25 230 3.83
Route55
81 2.7 162 5 16 80 25 267 4.45
Route60
34 1.13 68 5 11 55 25 148 2.47
Route62
49 1.63 98 6 13 65 25 188 3.13
Route travel time = Travel time + Loading time atsociety + Unloading time at chilling centre
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Identify the key challenges faced by Baroda Union? How
important is in-bound logistics for Baroda Union?
To reduce Transportation Cost
To use effective vehicle routing
Minimize transportation time which includes loading and
unloading
Increase the milk price upto the mark of Kheda and Valsad
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Effective use of vehicle routing to collect
optimum level of milk in both winter and
summer season
Reduce distance or waiting time with
effective route plan
Reduce transportation cost by selecting best
contractors.
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Suggest a suitable approach which Baroda Union can use for
designing efficient routes for milk collection? What kind of
conflicts are these revised routes likely to create at the
Baroda dairy? How should Baroda Union handle these
issues?
Re-designing the routes
Reduce the milk collection centres by selecting pickup
points common to few societies in each area.
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In what way will the problem of designing optimal
vehicle schedules be affected by the nature of
ownership?
In co-operative diary, the society collects all the milk
supplied by the farmers irrespective of the demand.
In corporate diary, the company will collect only its
required quantity of milk irrespective of excess
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If you were Jagdish Patel, what would you do?
Re-design the vehicle route individually for summer
and winter to collect the milk effectively and reach
optimal level.
Reduce transportation cost and increase milk price
Use best contractors with low wages to reduce more
ex ense.
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