Scenario 3 implies several changes in the logistics and warehousing of Zuivelhoeve Vers, see figure. The calculations that are needed to calculate the costs for these changes are given in this appendix. Twekkelo Nagel Raalte T1*: 635 PP/week Refrigerated T4.1* S1 Nagel Borgholzhausen T2*: 397 PP/ week refrigerated S2* T4.2*
Figure 11-6 Overview warehousing & logistics scenario 3
11.5.1 Calculations T1*: Internal transport Twekkelo - Raalte
What we need to calculate to know the transport costs for transport between the
warehouse in Twekkelo and the distribution center in Raalte, are only the number of pallets transported every week between Twekkelo and Raalte, since the costs per pallet are already known from the current situation.
The number of pallets transported per week between Twekkelo and Raalte we assume are equal to the total number of pallets transported per week to customers in the Netherlands and Belgium. In table 11-20 an overview is given of the number of pallets transported to a few customers in the Netherlands. By summing up all the number of pallet places in the third columns for the Netherlands and for Belgium, the total number of pallet places transported in a year between Twekkelo and Raalte are known. By dividing this number by 52 weeks, you will have the average number of pallets transported between Twekkelo and Raalte per week, this is 635 PP/week.
11.5.2 Calculations T2*: Internal transport Twekkelo - Borgholzhausen What we need to calculate to know the transport costs for transport between the
warehouse in Twekkelo and the distribution center in Borgholzhausen, are the number of pallets transported every week between Twekkelo and Borgholzhausen and the transport cost rate for transport between these two cities.
Number of pallets transported
First we begin with calculating the average number of pallets transported per week between Twekkelo and Borgholzhausen. we assume that the total number of pallets transported per week to customers in Germany. In table 11-21 an overview is given of the number of pallets transported to a few customers in Germany. By summing up the number of pallets to all customers in Germany, the total number of pallet places transported in a year between Twekkelo and Raalte are known. By dividing this number by 52 weeks, you will have the average number of pallets transported between Twekkelo and Borgholzhausen per week, this is 397.
Transport cost rate Twekkelo – Borgholzhausen
For calculating the transport cost rate between Twekkelo and Borgholzhausen, several known transport costs rates between two internal location are used and their distances have been looked up (this is also calculated in Appendix D), see table 11-22.
Internal
transport km costs costs/PP/km Oldenzaal-Raalte 49.5 117.82 0.074381313
Table 11-21 overview of the number of pallets transported per year to a few customers in Germany
Ede-Raalte 71 132.53 0.058331866
Average 0.094015645
Table 11-22Overview known cost rates for several internal transport options
Based on a truckload of 32 PP, the costs per PP per kilometer have been calculated for each customer(see last column, table ). By taking the average of this number over all known internal transport options, we have the transport cost rate that can be used to calculate the transport costs between Twekkelo and Borgholzhausen. The average is : €0.094 per pallet per kilometer.
This number can be used to calculate transport costs for all internal transports. 11.5.3 Calculations T4.2*: Transport Borgholzhausen – Customers Germany For calculating the transport costs between Borgholzhausen and the customers in Germany (except REWE FL) the transport cost rates must be known. These are calculated using the transport cost rates from Raalte to the customers in Germany and the distances from Raalte and Borgholzhausen to the customers in Germany.
First the distances from Raalte to the customers in Germany have been looked up using Google Maps (see third column, table 11-23.). The transport cost per pallet, based on the average number of pallets transport at once to a customer, are already known for each customer supplied from Raalte (see seventh column, table 11-23).
Using these costs and the distances to each customer, the graph in figure 11-7 has been made. In the graph a polynomial trend line was added, because this type of trend line fitted best the data based on the coefficient of determination (R2). R2 is the percentage of the variations that can be explained by the trend. R2 is a number between 0 and 1, when the value of R2 is 1, the trend line perfectly fits the data. There is no value of R2 that indicates a suitable trend line from an unsuitable trend line (Ozer, 1985). The value of R2 that separates “good” from “bad” depends on the research and on the choice of the researcher, for this graph we assume that an R2 of 0.55 is a suitable score for the trend line. In the graph it can be seen that the score of R2 is 0.6222, which is above our threshold of 0.55 and it means that
Table 11-23 Overview table used to calculate transport cost rate for transport between Borgholzhausen and customers in Germany
62 percent of the variations can be explained by the trend. The equation in the graph “y = - 5E-05x2 + 0.0803x + 33.05” is the equation of the trend line and shows the relationship between the costs per pallet and the distance. This equation will be used to calculate the costs per pallet from Borgholzhausen to the customers in Germany. On the place of the “x” in the equation the distance (in kilometers) from Borgholzhausen can be filled in, in this way the costs per pallet to each customer in Germany can be calculated (see column 8, table 11- 23 ). By multiplying the costs per pallet by the total number of pallets transported to each customer the total transport costs to each customer can be calculated (see last column, table). By adding together the total transport costs to each customer, the total yearly transport customer to all customers in Germany supplied from Borgholzhausen are known.
Figure 11-7 Costs per pallet versus the distance to the customers in Germany (current situation Zuivelhoeve Vers)
y = -5E-05x2 + 0.0803x + 33.05 R² = 0.6222 €- €10.00 €20.00 €30.00 €40.00 €50.00 €60.00 €70.00 €80.00 0 100 200 300 400 500 600 700 800 co sts p e r Pal le t p lac e
Distance Raalte - Customers Germany