Since the case states that the 5 distribution centers are in a big city ( doesn't specify multiple cities or one city but guess by the fuel cost there are 5 cities long distance a part). What if the company lease the truck and go from one city to the other? The fuel cost are not very clear,is the cost from starting point to center A,B .. and what is the distance between centrers and what is the cost of the fuel per km? If the company is able to rent the truck and go to multiple centers all in once can reduce the loss of capacity per truck ( ex. now the truck carie only150 box and pay for a capacity of 300 box).
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Alternative solution possible?
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Hi,
That's a good point! I think that this option is not considered in the case just not to make the resolution too complex (there would be a lot of combinations to be considered).
Be aware that is not certain that your solution can work: it could be that the distance between the factory and the centers is less than the distance between each pair of centers. Furthermore, you are assuming that our client has not to pay more for the leasing for multiple deliveries.
Anyway your reasoning is absolutely valid and the interviewer would be happy to receive a challenge like this.
Hope it helps,
Luca
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