Route designing for milk collection of

Kaira Union, AMUL Dairy

Report

By

Sameera.K (PGDM No. 9042)

Work Carried at

AMUL (KDCMPUL)
KAIRA District Co-operative Milk Producers’ Union Ltd.
Anand

Submitted in partial fulfillment of the requirement of

Summer Internship Programme

Under the Supervision of

Dr. Gopal Shukla

Sr. Executive (Sales & Marketing), AMUL-KDCMPUL
Anand- Gujarat

SDM Institute for Management Development

Mysore, Karnataka, India
(June 2010)
 CERTIFICATE

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 EXECUTIVE SUMMARY

Title: Route designing for milk collection of Kaira Union, AMUL Dairy

Supervisor: Dr. Gopal Shukla

Name of student: Sameera.K

PGDM No. 9042

Kaira Union, AMUL is associated with 6 lakh farmers directly for collection of raw milk on
daily basis. Milk is a perishable commodity. This makes milk collection complicated with
difficulties in maintaining milk quality, timely delivery to the dairy plants to prevent curdling
of the milk etc. To ensure proper quality and hygienic transportation of milk AMUL started
with the concept of Bulk Milk Coolers (BMCs). BMCs of capacities from 1000ltrs to
5000ltrs are installed in different villages. Milk is collected twice a day from the farmers at
the Village Collection center. This milk collected is stored in the BMCs and maintained at a
temperature of 3-4 degrees. Milk tankers transport the milk (from both morning and evening
collection) from Village collection center once a day.

One of the problem areas in milk collection process is, in some villages the milk to be
collected exceeds the BMC (Bulk Milk Cooler) capacity. This requires the tankers to be sent
to these villages more than once in a day. The reason being, milk not stored in the BMC will
spoil and requires to be transported to the dairy as soon as possible. This leads to creation of
special routes for excess milk collection at specific villages which in turn leads to hike in
transportation costs.

This project’s main objective was to reduce the frequency of movement of tankers and design
routes for a particular zone. Also, different parameters to be considered while designing
routes were studied as a part of the project. Keeping in view milk production trends over the
year (peak, off-peak and transition) a step by step method for route designing was suggested.

This report contains the details regarding the above mentioned project.

Signature of Student Signature of the supervisor

Sameera.K Dr Gopal Shukla

Sr. Executive (Marketing & Sales)
Date:1/05/2010 AMUL (KDCMPUL)
Anand

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 ACKNOWLEDGEMENT

I take this opportunity to thank ‘Kaira District Cooperative Milk Producers’ Union
Limited’, Anand for providing me this wonderful opportunity. I would also like to express
special gratitude towards the Managing director of AMUL Mr. Rahul Srivvastava who spared
his time to explain organization requirement and to discuss details of the project.

I express my profound gratitude and deep regards to my guide Dr. Gopal Shukla, my support
guide Mr. Akshay Shah and Prof. Durga Parsad, IRMA for their valuable suggestions and
constant encouragement.

I specially thank Mr. Prakash, Mr. Rana and all the members managing Vehicle Monitoring
Cell, AMUL for their co-operation and support throughout the course of this project.

I am grateful to my project coordinator Mr. Jignesh Bhoi for directing me to the right people
and giving freedom to work at my own pace. I also, extend my gratitude to Mr. Rahul
Prajapati, Societies Division, AMUL and the Management team at AMUL 3 Dairy plant for
their cooperation.

I record with appreciation the help rendered by Mr. Pratik and Mr. Harendra.

I would like to express my heartfelt gratitude to Mr. Raju. M. Patel, Public Works
Department, Anand, for helping me out in collecting data necessary for the successful
completion of this project.

Sincere appreciation is extended to Dr. M.R. Suresh, the internal faculty guide of SDM-IMD,
for providing me with timely feedback and guidance for efficient execution of the project.
This opportunity was a great learning experience, which would not have been possible
without the support from the management of SDM-IMD.

Several well-wishers helped me directly or indirectly; I virtually fall short of words to express
my gratefulness to them.

Sameera.K

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LIST OF ABBREVIATIONS

KDCMPUL - Kaira District Cooperative Milk Producers Union Limited

BMC - Bulk Milk Cooler

DCS - Dairy Cooperative Societies

PWD - Public Works Department

MC - Milk Collection

AMCU - Automated Milk Collection Unit

max c - Maximum milk collection

min c - Minimum milk collection

Avg. c - Average milk collection

T.Cost - Transportation Cost

Kms - Kilometers

ltrs - Liters

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LIST OF FIGURES

Pic 1: AMUL products

(Source: Internet, Google Images)

Pic 2: The AMUL Model

(Source: Amul data)

Pic 3: AMUL at all levels

(Source: Amul data)

Pic 4: AMUL -1 Dairy plant

(Source: Amul data)

Pic 5: AMUL-2 Dairy plant

(Source: Amul data)

Pic 6: AMUL-3 Dairy plant

(Source: Amul data)

Pic 7: Milk collection at DCS

(Source: Amul data)

Pic 8: Queue at a DCS during milk collection

(Source: Amul data)

Pic 9: Milk weight/Fat/SNF check and slip generation through AMCU

(Source: Amul data)

Pic 10: Bulk milk cooler

(Source: Internet, Google Images)

Pic 11: AMUL -3 Dairy plant reception dock and silos

(Source: Amul data)

Pic 12: Tankers at reception dock

(Source: Amul data)

Pic 13: Milk collection trend over the year

(Source: Amul data)

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LIST OF TABLES

Tab 1 Milk collection over the year in Bhuvel and Nagra DCS
(Source: Amul database)

Tab 2 Average milk collection for all seasons

(Calculated on basis of data from Tab 1)

Tab 3 Percentage difference in milk collection over the year

(Calculated on basis of data from Tab 2)

Tab 4 Estimated milk collection for peak, off- peak and transition season
(Calculated on basis of data obtained from Tab 3)

Tab 5 Data for 10 days regular routes

(Source: Amul database)

Tab 6 Avg. Transportation cost per day- regular routes

(Calculated on basis of data obtained from Amul database)

Tab 7 Milk Collection data for special routes

(Source: Amul database)

Tab 8 Data for 7 days - special routes

(Source: Amul database + additional T.cost calculations)

Tab 9 Data for designed routes – Morning (High risk)

Tab 10 Data for designed routes – Evening (High risk)

Tab 11 Data for designed routes – Morning (Low risk)

Tab 12 Data for designed routes – Evening (Low risk)

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Contents
CERTIFICATE ................................................................................................................... II
EXECUTIVE SUMMARY ............................................................................................... III
ACKNOWLEDGEMENT .................................................................................................IV
LIST OF ABBREVIATIONS ............................................................................................ V
LIST OF FIGURES ...........................................................................................................VI
LIST OF TABLES ........................................................................................................... VII
1. INTRODUCTION......................................................................................................... 1
2. ORGANIZATION AT A GLANCE ............................................................................ 2
3. ABOUT THE ORGANIZATION................................................................................ 5
4. PROJECT BRIEF....................................................................................................... 10
4.1. Objectives of the study ............................................................................................ 14
4.2. Scope of the study .................................................................................................... 14
4.3. Area of coverage ...................................................................................................... 14
4.4. Significance .............................................................................................................. 15
5. PROBLEM DEFINITION ......................................................................................... 16
5.1. General Route design techniques and their applicability .................................... 16
5.2. Challenges for route design .................................................................................... 16
6. METHODOLOGY ..................................................................................................... 18
6.1. Route designing – Procedure.................................................................................. 18
6.2. Transportation Cost ................................................................................................ 19
7. LIMITATIONS OF THE STUDY ............................................................................ 20
8. OBSERVATIONS ....................................................................................................... 21
9. MILK COLLECTION TREND ................................................................................ 22
10. EXISTING ROUTES .............................................................................................. 27
10.1. Regular routes ...................................................................................................... 27
10.2. Special Routes ...................................................................................................... 31
11. DESIGNED ROUTES ............................................................................................ 34
11.1. More economical – High risk .............................................................................. 34
11.2. Less economical – low risk .................................................................................. 37
12. RECOMMENDATIONS ........................................................................................ 40
13. CONCLUSION ........................................................................................................ 42
14. APPENDICES ........................................................................................................... a
15. REFERENCES .......................................................................................................... g

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1. INTRODUCTION

The dairy industry faces many challenges like quality management, hygiene, processing,
meeting demand requirements etc. but the main task based on which it runs its show is – milk
procurement. Milk is a perishable commodity. This makes milk procurement a complicated
process. There are basically three important factors on which the entire milk procurement
process can be understood - Time, Temperature and Hygiene.

The milk collected from different sources (in this dairy cooperative from more than 1000
villages) has to be transported to the dairy within the stipulated time of few hours. When kept
at the optimal temperature of 36-38° F. (2.2-3.3°C.) fresh raw milk will last from 7-10 days.
The challenge here is 7-10 days freshness is impossible practically. This is due to the ambient
temperature conditions. It is very difficult to maintain the temperature of the raw milk at 2.2-
3.3°C throughout the duration of transportation. In very few dairies in India like Amul,
collection of milk in bulk milk coolers and transportation in insulated milk tankers is done.
Where as in most other cases milk collection is done in cans and transportation is done in
open trucks. Even in Amul there is still a significant amount of procurement is done in cans.
But, this situation is rapidly changing. Insulated milk tankers have to transport the milk
within 24 hrs at a temperature below 10°C to meet the dairy quality requirements. This makes
milk procurement still a daily task.

Designing routes for milk collection is a challenging process. It involves huge costs and it has
limited scope for delays. The milk tanker on a particular route should reach all the collection
points on the route with sufficient storage capacity. These milk tankers have to reach back to
the dairy with milk in good condition for processing. Any variation in these requirements will
mean deterioration in the quality and losses for the dairy.

For designing these tanker routes general route planning techniques cannot be followed as
they are. It will require a mix of intuitive, pragmatic consideration and analytical
understanding of the process requirements. The same was tried in this project.

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2. ORGANIZATION AT A GLANCE

Name : ‘AMUL’(Anand Milk Union Ltd.)

Form : Co-operative sector registered under the co-operative

Society act

Registration : 14th Dec 1946

Registered office : Kaira District Co-operative Milk Producer’s Union

Limited \, Anand – 388001

Size : Total milk handling capacity of 14.5 lakh lt/day

Annual milk collection : 297436246 / 324410536 / 40718616 / 468587136

(in Kgs) Yr ’06 / ’07 / ’08 / ’09

Sales Turnover : 709 / 822 / 1077 / 1378 Crore Rupees

Yr ’06 / ’07 / ’08 / ‘09

Initial Promotors : Shri T K Patel

Shri Moraji Desai

Foundation and inauguration : Dr. Rajendra Prasad, President of India laid foundation
stone on Nov 15th,1954
On Oct 31st,1955 Jawaharlal Nehru, Prime Minister of
India declared it open

Production units : Dairy – Anand food complex, Mogar

Cheese plant – Khatraj
AMUL Satellite Dairies in Pune, Bombay, Kolkata and
Sikkim

Research center : Amul Research Development Association, Ode

Products : Milk – Amul Gold, Shakti, Tazza, Slim & trim and cow
milk
Butter- Amul Butter, Butter with reduced salt

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 Cheese-Amul processed cheese, Paneer, Gouda,
Emmental, Pizza mozzarella

Infant milk food- Amul spray, Amul infant formula I,II

Milk powders- Amul full cream milk powder, Amulya

Dairy whitener, Sagar skimmed milk powder

Sterilized Homogenized flavoured milk – Amul Kool

café, Koko, elaichi, rose, kesar

Sterilized Homogenized fruit based milk – Mango,

Strawberry, Banana, Badam

Curd- Amul Masti Dahi

Ghee- Amul Ghee

Butter milk – Amul butter milk , Amul Masti Chaas

Cocoa products- Amul milk chocolate, Fruit & nut,

Badambar, Chocozoo, Amul Sugar free

Cooking chocolate- Amul Chef’s premium- dark

chocolate,
Amul Chef’s class- Milk chocomass

Malted Milk food- Nutramul

Extruded food- Amul Ganthaia, Munch time

Bread Spread- Amul lite

Table Margarine- Amul Delicious

Amul Bread- Amul Sandwich Bread/ Whole Wheat

Bread/Bun

Ice-creams – Prolife, Sugarfree, Amul Ice-creams

range
Industrial products : Coco butter, Coco powder, Coco Mass, Coco cream

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Quality of Milk Products : The Union has obtained ISO 9001-2000 and HACCP
Certification. It is therefore, imperative that AMUL
focus and lay emphasis on Quality.

Symbol :

The actual meaning of this symbol is coordination of hands of

different people by whom this Union is now at the top. The
first hand of milk producer, second hand of processor, the
third hand of marketer and the fourth one of the customer.

AMUL Logo :

No. of employees : 1300 Approx. (2009 data)

No. of society : Societies- 1147, Members- 634678

members

Motto : The main motto of Amul is to help the farmer. AMUL system
works under the objective of highest possible price to the milk
producer and lowest possible price to the customer. Farmers
paid money in cash in exchange of milk on the spot. Amul
gives farmers a daily source of income to meet their needs.

Quality Policy : We the motivated and devoted workforce of AMUL are

committed to produce wholesome and safe food of excellent
quality to remain the market leader through development of
quality management system, state of art learning technology
innovation and eco-friendly operation to achieve delightment of
customer and betterment of milk producers.

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3. ABOUT THE ORGANIZATION

Based in Anand, the Kaira District Cooperative Milk Producers’ Union Limited is a co-
operative and a democratic institution. It was registered on December 14, 1946 as a response
to exploitation of marginal milk producers by traders or agents of existing dairies in the small
town named Anand. This co-operative is: of the farmers, by the farmers, for the farmers and
managed by professionals appointed by the farmers. It later joined hands with other milk
cooperatives, Banas, Sabar and Mehsana which now form the Gujarat network, Gujarat
Cooperative Milk Marketing Federation (GCMMF). The Gujarat network now covers 2.12
million farmers, 10,411 village level milk collection centers and fourteen district level plants
(unions) under the overall supervision of GCMMF which sells the products collectively
produced by these cooperatives under the brand umbrella AMUL. Every day, AMUL collects
8.7 million kg of milk from these villages, converts the milk into branded, packaged products,
and delivers goods. Its sales turnover for the year 2008-09 was Rs.5255.41 crores.

AMUL is the largest food brand in India and world's Largest Pouched Milk Brand
(Wikipedia). AMUL has a wide range of products- milk-slim/gold/regular (each varying in
the fat content Gold being richest in fat and slim milk being lowest in fat content.), Ice
creams- pro- biotic/sugar free /regular, butter-lite/regular, cheese, paneer, chocolates- Choco-
zoo/Bindaaz/ Fruitnut etc, flavoured milk, Buttermilk, Curd(Masti Dhai), Sweets, milk
powder, Amul Shakti, frozen pizza and cake. It recently launched range of breads which are
currently sold only in Anand and nearby areas.

Pic 1: AMUL products

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Organization Structure

The organization follows The AMUL Model(also (also known as ‘The Anand Pattern’),
Pattern’) consisting
a three-tier
tier cooperative structure. This structure consists of a Dairy Cooperative Society at the
village level affiliated to a Milk Union at the District level which in turn is further federated
into a Milk Federation at the State level. The above three-tier
three ier structure was set-up
set in order to
integrate the various functions’
functions milk collection is done at the Village Dairy Society, Milk
Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at
the State Milk Federation. This helps in eliminating not only internal competition but also
ensuring that an economy of scale is achieved. As the above structure was first evolved at
Amul in Gujarat and thereafter replicated all over the country under the Operation Flood
Programme, it is knownn as the ‘AMUL Model’ or ‘Anand Pattern’ of Dairy Cooperatives.

Milk
and
Milk
products

Milk

Pic 2: The AMUL Model

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A glance at AMUL at different stages:
stages

Pic 3: AMUL at all levels

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Various dairy plants at Anand:

AMUL-1 is the first dairy established in 1955 and extended to the one shown in picture
pi
below in 1960.

Pic 4: AMUL -1 Dairy plant

AMUL-2 is the second dairy established in 1965.

Pic 5: AMUL-2 Dairy plant

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AMUL-3 is the third dairy established in 1996. Capacity- 1.4 million liters.

Pic 6: AMUL-3 Dairy plant

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4. PROJECT BRIEF

Introduction to milk procurement

Milk is a perishable commodity. This makes milk procurement a complicated process. There
are basically three important factors on which the entire milk procurement process can be
understood - Time, Temperature and Hygiene. Once the milk is collected it has to be
transported to the dairy in not more than 24hrs provided it I stored in bulk milk coolers in
proper condition. Milk temperature has to be maintained between 3- 10 degree Celsius to
prevent curdling of milk. Milk has to be transported to the dairy and this should involve
minimum human contact with the milk to meet the quality standards. Also, the roads should
not be too bad as more movement in the milk will lead to increase in bacterial growth.

Milk Procurement at AMUL

Milk procurement is done in two different ways at AMUL 2 and AMUL 3 dairy plants at
KDCMPUL, Anand. AMUL 2 uses trucks which bring milk from different Dairy Cooperative
Societies (DCS) in milk cans. AMUL 3 uses insulated milk tankers which bring milk
collected in Bulk Milk Coolers (BMCs) installed at different DCS.

AMUL has started installing BMCs at all DCS so that they can successfully switch over to
milk tanker transportation for milk. BMCs enable DCS to store milk in bulk and maintain it
at required temperature (3- 10 degree Celsius). BMCs have many advantages like:

• Better storage which in turn reduces milk transportation to once a day from twice a
day
• Proper temperature maintenance
• Better hygiene (Milk is poured into the BMC once its quality check is done. Then it is
directly loaded to the milk tanker. On reaching the dairy plant milk tanker is directly
emptied into the silo after sample check and other formalities. None of these
processes involve any human contact with the milk.)

AMUL uses third party logistics for milk procurement. It doesn’t depend on one contractor
but its logistics is distributed amongst various contractors. It has approximately 75 insulated
milk tankers of capacities ranging from 5000ltrs to 16504ltrs to cover 540 DCS in Anand and
Khedha districts. It pays the third party logistics based on the Kms of travel and capacity of
the tanker. Kms travelled are tracked by GPS systems installed on the tankers for monitoring
their movement. Also, a truck sheet is maintained with all necessary details related to milk
samples and transportation. A log book is maintained in which tanker no., route no., qualitity
of milk collected, special comments etc are recorded every day.

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The procurement process in steps:

Collection of milk at village DCS in BMCs

Pic 7: Milk collection at DCS

Pic 8: Queue at a DCS during milk collection

• DCS open up for an hour and half in all the registered villages twice a day, morning
and evening for collection of milk.

• Farmers line up with their ID cards and their milk contribution. Queue is formed on
first come first basis irrespective of one’s caste. This system has been in function
since the establishment of AMUL.

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Pic 9: Milk weight/Fat/SNF check and slip generation through AMCU

Pic 10: Bulk milk cooler

• Milk poured by a farmer is weighed and liters of milk contributed are noted.
• Sample is drawn from the milk and SNF and fat content is checked.
• After verification of quality the milk is poured into the BMC
• A slip is automatically generated indicate what the DCS should pay the farmer given
the specifications milk poured by him. (Rates are decided on basis of fat, SNF content
and liters)
• The payment is made on the spot to the farmer and he leaves DCS with money in his
hand.

All this gets directly registered in the database(database contains the farmer’s record- milk
poured daily, quality, quantity, registration no. etc.). This database also records the milk
contribution of each DCS and maintains details of quality of milk by each DCS individually.
In case of a DCS providing poor quality immediate action is taken and the DCS is liquidated.

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Pic 11: AMUL -3 Dairy plant reception dock and silos

Pic 12: Tankers at reception dock

• Tankers collect the milk from the DCS and reach the dairy plant reception bay
• Sample is drawn from each tanker and is matched with the village sample collected by
the supervisor. Supervisor from AMUL accompanies the tanker driver during milk.
He is trained to draw milk sample at each DCS and verify the quality of milk before
loading it into the tanker.
• After sample verification milk is unloaded into the silos and is ready for processing
• The tankers are then cleaned with plain water, soda, hot water and cold water
• The tankers are now ready for their next trip

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 4.1. Objectives of the study

This study was conducted at Kaira District Co-operative Milk Producers Union Ltd.
(KDCMPUL), Anand. KDCMPUL collects milk from Anand and Kheda districts covering
nearly 540 DCS. While milk collection at KDCMPUL involves both can and tanker milk
transportation this study covers only tanker related route design. The objectives of the study
are as follows:

1. Understand precise requirements of quality milk procurement

2. Examine milk production trend and understand its importance in route design
3. Indicate steps for route design
4. Design a few routes for quality milk collection with a view
a. To reduce transportation costs
b. Improve tanker management
5. Compare transportation costs and draw conclusions

4.2. Scope of the study

The study is limited to understanding the quality milk procurement requirements when the
milk collection exceeds the storage capacity (BMC) at the DCS. It deals with developing an
idea for route design to tackle such situations without having a hike in the transportation
costs. AMUL is in a growth phase with BMCs being installed at rapid pace. A BMC
installation means an additional DCS to be covered by the tanker for milk collection. It has
no fixed routes and it cannot operate on fixed routes for this very reason. However, an effort
is made to develop a model according to which different routes can be designed to bring
down the transportations costs and improve the tanker management. For the purpose of this
study we have considered cost (under ideal conditions) with the existing routes and compared
it with the estimated cost (under ideal conditions) of the proposed routes. Practical issues that
could create variance and ideas to manage them are suggested later in the report.

4.3. Area of coverage

This project involves route design for select BMC installed DCS in Khamabhat and Tarapur
Taluka. This area was selected for the following reasons both of which facilitate in
stabilization of routes:

Khambhat - High density of DCS. This implies there is less possibility of new DCS being
added in this zone which in turn means less possibility for change of routes due to new
addition of DCS.
Tarapur - Wide spread DCS. There is less number of milk producing villages in this Taluka
ans these are already pouring milk. Also, for calculation of transportation cost of milk
procurement from this zone all DCS being covered by specific routes via Khambhat had to be

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considered. These routes cover villages in both Khambhat and Tarapur zone and so all these
villages had to be considered.

DCS covered by 12 routes currently operating in this area were considered. Tankers currently
being used for these routes are accounted in terms of tanker capacity available for covering
these villages. Average milk collection in the peak season at each DCS was considered for
collection forecast in off peak and transition seasons. Milk production trend was identified
using data across the all the months for two selected DCS.

4.4. Significance

Development of a model for route design with special consideration to under capacity BMCs
will help the organization in following ways:

• This will help them to consider transportation in a different angle necessary to cut
costs in future due to increased milk production at different DCS.

• A standardized and more rational approach to route design considering peak, off-
peak seasons and other constraints with possible reduction in transportation costs and
better tanker management

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5. PROBLEM DEFINITION

The whole idea behind installation of BMCs and tanker collection was better storage and
improved quality management. However, in some DCS the actual milk collection has
exceeded the forecasted milk collection due to various reasons. This lead increase in
transportation costs as double trips need to be made to the DCS with under capacity to
prevent spoiling of milk. Also, KDCMPUL is on a growth phase with BMC installations
being carried out at a rapid pace. This adds DCS to be covered by milk tankers at the same
pace of BMC installation. This makes fixed route scheduling difficult and practically
impossible.

5.1. General Route design techniques and their applicability

Shortest distance method: It doesn’t apply to the entire network of milk collection. It
applies only in between one point on route to another point on route. This happens because
unlike normal transportation problems here we need to touch all destinations. Also, here
shortest route is not the only criteria. Road conditions, capacity of milk tanker, DCS timing
etc play a very important role in deciding the routes.

Travelling salesman problem: It doesn’t apply here even though its concept is to touch all
points in the shortest possible way. Considering the capacity of the tankers we can’t cover all
50 villages in one big loop.

In travelling salesman problem we don’t retrace the path. But, practically if the route covers
less distance if we retrace the path we can save a lot in the transportation costs. Also, not all
roads will be directly or inter-connected. We have to retrace a path if no other road has been
constructed.

5.2. Challenges for route design

Milk collection time

Milk collection time from the DCS should not interfere with the local milk collection from
farmers at the DCS. Local collection of milk happens between 6:30AM- 8:00AM and
6:30PM- 8:00PM. At centers where milk is collected once a day, when tankers reach the DCS
two times milk collection (morning and evening) should be available for transportation. At
centers where milk collection is done twice, each time the tanker reaches the DCS, one time
milk collection (morning or evening) should be available for transportation.

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Roads
Not all roads can be used for route design. Maximum distance should be covered by National
highways and pucca roads. This is required for the following reasons:
• Low bacterial growth: Increased movement in the tanker will lead to increase in
bacterial growth in milk. This reduces the life of milk.
• Condition of tankers: Proper roads will help maintain good condition of the tankers
and consequently the quality of milk.

Duration of transportation
Transportation of milk should be less than 24hrs. This is required to ensure availability of
tankers for next day routes, milk quality and milk life. The tankers being used for
transportation are not refrigerated but insulated tankers. These tankers can maintain the
temperature of milk below the required 10 degree Celsius only for limited time. So, no route
should exceed this time limit. If due to any reason there is a delay in milk to reach the dairy
the milk will go sour. AMUL pays the milk producers on the spot payment for,milk collected
and sour milk means AMUL has to bear the loss.

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6. METHODOLOGY

For covering this zone (Khambhat Taluka and nearby villages in Tarapur) the following
procedure was followed:
1. Data collected related to that zone
a. No. of villages under that zone
b. BMC capacity
c. Milk production at each village
i. Peak season
ii. Non-peak season
d. Average cost of transportation for this zone per km over last month
e. Tankers available for transportation in this zone
i. No. of tankers
ii. their respective capacity
2. Collected data and plotted the milk production trend across the year.
3. Designed new routes
4. Estimated the per day transportation cost for this zone based on the existing routes
designed.
5. Compared the new projected transportation cost per day to existing transportation cost
per day.
6. Analyzed and drew conclusions.

6.1. Route designing – Procedure

Step 1: The following data was obtained for all the 54 DCS to be covered
- BMC capacity
- Avg. Milk production in peak season

Step 2: DCS were categorized into two categories

-One time collection (BMC capacity <= Milk collection at DCS)
- Two time collection ( BMC capacity > Milk collection at DCS)

Step 3: All DCS to be covered were plotted on a road map of Anand district

Step 4: All geographically linked DCS were clubbed in clusters

Step 5: Morning routes were designed ensuring no two time collection DCS was left
out.

Step 6: Feasibility of the route was discussed and estimated to and fro kilometers for
the route were obtained from the PWD department, Anand.

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Step 7: Tankers available for covering these routes were obtained by general analysis
from the 10 day data obtained from existing routes.

Step 8: Tankers were assigned to these routes for two conditions

- More economical, high risk (92% to 100% capacity utilization)

- Less economical, low risk (85% to 92% capacity utilization)

6.2. Transportation Cost

Transportation cost was calculated for ideal conditions. Ideal condition should mean, proper
sequence was followed in milk collection and minimum route kilometers were travelled.
There was no deviation from the existing routes operating while the study was conducted.

Data was collected for ten days and avg. transportation cost per route per day was calculated
for regular routes and special routes both operating daily.

Calculation of transportation cost existing routes:

Step 1: Kilometers for routes, to and fro were obtained for all the 12 routes covering
54 DCS under study

Step 2: 10 days data was obtained for all these 12 routes – Capacity of tanker sent on
that route, arrival time and departure time for tankers and total milk collected
in that route.

Step 3: List of tanker capacities and their charge per kilometer was obtained

Step 4: Transportation cost was calculated by multiplying charge per kilometer for a
particular capacity tanker operating in a route for ideal kilometers of travel.

Step 5: Average transportation cost per day was calculated for each route

Step 6: Total Average transportation cost for covering all 54 DCS was calculated

SDMIMD Page 19
Calculation of transportation cost for designed routes:

Step 1: Kilometers of routes was estimated with the help of PWD department, Anand.

Step 2: Tankers available for covering these routes were obtained by general analysis
from the 10 day data obtained from existing routes

Step 3: Transportation cost was calculated by multiplying charge per kilometer for a
particular capacity tanker operating in a route for ideal kilometers of travel.

7. LIMITATIONS OF THE STUDY

• AMUL is in a growth phase with BMCs being installed at rapid pace. A BMC
installation means an additional DCS to be covered by the tanker for milk collection.
Therefore, there is a change in the data currently available and the data at the time
when this study was conducted.

• This study covers only 54 DCS out of 540+ DCS where milk collection takes place
daily

• This study overlooks the fixed timing for milk collection for tankers from the DCS

• All kilometers and time of travel are estimated values obtained from the PWD
department

• Milk collection trend is obtained from the data for two villages over the year. This
need not necessarily reflect at all villages. More villages were not included for trend
analysis due to difficulty in obtaining data.

• In some areas where data was not available average value of data available was
considered for analysis.

SDMIMD Page 20
8. OBSERVATIONS

There are 54 villages in Khambhat and Tarapur which are covered under this study. For the
purpose of fair transportation cost comparison DCS covered by 9 regular and 3 special routes
were only taken into consideration. Regular routes are routes which operate once a day
normally from morning to evening. Special routes are routes designed to collect milk only
from those DCS where milk production exceeds BMC capacity. These routes operate during
the night and collect the milk poured in by the farmers in the evening time.

Intuitive method is currently followed because of the problems stated below:

• Rapid growth phase - new BMCs being installed every week
• Power cuts in villages during milk collection
• Availability of tankers of required capacity
• Demand from all DCS for milk tankers in the morning

Rapid growth phase – Any DCS to be included in the milk tanker route has to have a BMC
installation and registration. If it is possible to obtain a record of the sequence in which
BMCs are being installed in different DCS for each area considering installation and
registration time of about one month etc. proper planning can be done accordingly. Fixed
routes can be designed to absorb the newly added DCS just by changing the capacity of milk
tankers.

Power cuts – This is definitely out of our control and we cannot anticipate power cuts while
designing routes. However, it can be enquired from the electricity board about scheduled
power cuts if any in these villages and collection during that time interval should be avoid
and this could be incorporated in route planning. Also, some DCS have diesel sets for power
generations should be noted while designing routes.

Availability of tankers of required capacity – Even though there is a demand from all the
DCS for milk tankers in the morning some DCS should be ready to compromise for some
other convenient time. Ultimately AMUL believes in sharing the profit with the farmer. If we
can achieve lesser transportation costs and better tanker management with this little
adjustment, it will benefit everyone.

Demand from all DCS for milk tankers in the morning – Out of the 54 villages to be
covered in this study only 12 villages have to be covered twice a day which means only these
12 villages necessarily require milk tankers in morning as they need to empty the BMC (local
evening milk collected from farmers) to create storage capacity for local milk collection from
farmers again in the morning. Rest all DCS can manage with milk tankers arriving at anytime
of the day apart from local collection timings.

SDMIMD Page 21
9. MILK COLLECTION TREND

The objective of obtaining milk collection trend is to understand the variation in the capacity
requirements for milk procurement throughout the year. This also provides us a way to
forecast the milk collection individually at each village. This, in-turn helps us in route design
where we have to have an idea of the milk production as we need to meet the capacity
requirements. When a milk tanker is sent on a specific route the number of villages it covers
depends on the milk collection at each village and the capacity of tanker.

Milk Collection data

Milk collection over the year in Bhuvel and Nagra DCS on 14th of every month was collected
and plotted to obtain the milk collection trend.

Significance of the date 14th – Every January 13th farmers feed their cattle with best quality
fodder and different nutritive items due to religious sentiments. Due to proper feed on
January 13th the cattle produce better quantity of milk on January 14th. This date is known as
the pseudo peak and usually is the highest milk collection day in the year. However, the
actual peak falls in between February 7th – 14th. Milk collection is high during this week. To
capture both the pseudo peak and the actual peak in the milk trend these dates were selected.

For obtaining the milk collection trend only two villages were considered because of
difficulty in obtaining the data for more villages. However, it was tried to correlate the trend
in these villages with the total milk received on the same dates. But, this was dismissed on
the grounds that total milk collection won’t reflect the exact trend as BMC installation
interferes with fixed data of milk collection. A BMC added means one more DCS to covered
by tanker route and increase in milk collection.

SDMIMD Page 22
Month Bhuvel Milk Production (in Nagra Milk Production(
Produ in
ltrs) ltrs)
January 2218 3248
February 2100 3796
March 2244 3540
April 2130 3272
May 1945 3072
June 1696 2740
July 1497 2568
August 1512 2444
September 1502 2428
October 1492 2462
November 1499 2816
December 1596 3088
Tab 1 Milk collection over the year in Bhuvel and Nagra DCS

Colour code:
Peak

Transition

Off-Peak

Pic 13 Milk collection trend over the year

SDMIMD Page 23
Peak season: Highest milk collection during this season. More BMC storage shortage faced
during this time which means high tanker requirement. Maximum operating routes.

Off-peak season: Lowest milk collection during this season. Usually not much BMC storage
shortage faced during this time therefore, less tanker requirement. Less routes

Transition season: Season between the highest to lowest and lowest to highest milk
collection of the year. Little BMC storage shortage faced during this time therefore, moderate
tanker requirement.

Milk collection analysis

• Average peak milk collection is calculated by taking average of milk collection during
the months Jan- April.

• Average off-peak milk collection is calculated by taking average of milk collection

during the months Aug- Oct.

• Average transition milk collection is calculated by taking average of milk collection

during the months May-July and Nov-Dec.
Tab 2 Average milk collection for all seasons
Avg. peak Avg. off peak
DCS MC MC Avg. Transition MC
Bhuvel 2173 1502 1658.6
Nagra 3464 2444.66 2856.8

Tab 3 Percentage difference in milk collection over the year

Avg. Peak
Avg. Peak MC–Avg. Highest peak MC value- Highest peak MC value -
MC - Avg. Transition Highest off peak MC Highest transition MC
% diff off peak MC MC value value
Bhuvel 30.87 23.67 32.62 13.32
Nagra 29.42 17.52 35.14 18.65

Lowest percentage difference is selected for estimating milk collection in the off peak and
transition seasons. This is done to minimize the risk by considering maximum values.

SDMIMD Page 24
Milk collection estimation

Milk collection was estimated for off-peak and transition seasons as follows:

Off –peak estimate (100-29.42)% of MC in peak season

Transition estimate (100-13.32)% of MC in peak season

Estimated milk collection for off-peak and transition season by using percentages above-

Tab 4 Estimated milk collection for peak, off- peak and transition season
Sr. No. Code Village BMC Avg. Off peak Transition
Capacity Peak MC MC
MC
1 121 BAMANVA 5000 4600 3220 4002
2 122 VATADRA 5000 2600 1820 2262
3 123 JALSAN 5000 4600 3220 4002
4 126 FINAV 5000 4560 3192 3967.2
5 132 JAHAJ 5000 4850 3395 4219.5
6 135 DALI 3000 3100 2170 2697
7 137 KATHANA 3000 2450 1715 2131.5
8 149 PIPLOI 3000 1900 1330 1653
9 150 JALLUNDH 3000 2150 1505 1870.5
10 153 KHATNAL 5000 2550 1785 2218.5
11 161 TIMBA 3000 1800 1260 1566
12 163 POPATVAV 5000 3800 2660 3306
13 165 KALAMSAR 5000 5000 3500 4350
14 168 BHUVEL 2000 1900 1330 1653
15 193 ISWARVADA 3000 2500 1750 2175
16 195 LUNEJ 2000 2100 1470 1827
17 203 VALANDAPURA 1000 1000 700 870
18 231 VATRA 5000 3400 2380 2958
19 235 SAYMA 3000 1650 1155 1435.5
20 237 KALITALAVADI 3000 2250 1575 1957.5
21 239 NAGRA 5000 4000 2800 3480
22 247 TARAPUR 5000 1100 770 957
23 250 MORAJ 5000 2100 1470 1827
24 255 SUNDARA 2000 1700 1190 1479
25 328 NANAKALODRA 5000 2650 1855 2305.5
26 329 VASNA K 5000 2500 1750 2175

SDMIMD Page 25
Sr. No. Code Village BMC Avg. Off peak Transition
Capacity Peak MC MC
MC
27 330 RALEJ 5000 4800 3360 4176
28 347 KANJAT 1000 1850 1295 1609.5
29 456 MOBHA 1000 1350 945 1174.5
30 459 HARIYANA 3000 2200 1540 1914
31 480 MALU 2000 2100 1470 1827
32 501 CHITARVADA 2000 1500 1050 1305
33 642 SAKKERPUR 3000 3150 2205 2740.5
34 660 KHADODHI 2000 2300 1610 2001
35 767 BUDHEJ 2000 1650 1155 1435.5
36 768 SANTH 2000 2300 1610 2001
37 820 DHAIRYAPURA 2000 1500 1050 1305
38 867 MAHIYARI 2000 1400 980 1218
39 869 KHANPUR K 2000 1500 1050 1305
40 872 VALLI 1000 1500 1050 1305
41 873 KHAKHSAR 2000 1500 1050 1305
42 874 PADRA 2000 1800 1260 1566
43 876 AMBLIARA K 2000 1400 980 1218
44 877 JICHAKA 2000 1500 1050 1305
45 909 MITLI* 2000 2700 1890 2349
46 911 PANDAD 2000 2100 1470 1827
47 913 VAINAJ 1000 1600 1120 1392
48 916 GUDEL 1000 1000 700 870
49 917 DAHEDA 2000 1700 1190 1479
50 919 SOKHADA KH 2000 1800 1260 1566
51 920 NEJA 1000 1200 840 1044
52 1018 JUNI MALASONI 2000 2000 1400 1740
53 1063 DHUVARAN 3000 1800 1260 1566
54 1097 ISLAMPURA 2000 950 665 826.5
124960 87472 108715.2

SDMIMD Page 26
10.EXISTING ROUTES

10.1. Regular routes

Tab 5 Data for 10 days regular routes

Route Date Tanker Capac Exit Entry Net Net Rate/ Kms T.Cost
No. no. ity time time time weight km
15 15-03- 1104 12700 8.3 14.42 6.12 13000 19.74 102 2013.48
2010
15 16-03- 7275 13115 8 14.38 6.38 12860 20.38 102 2078.76
2010
15 17-03- 5799 12070 7.4 13.53 6.13 11420 18.76 102 1913.52
2010
15 18-03- 5474 11425 7.12 13.09 5.97 12920 17.75 102 1810.5
2010
15 19-03- 3348 13000 7.3 14.53 7.23 13040 20.2 102 2060.4
2010
15 20-03- 3254 12712 9.3 14.52 5.22 11580 19.75 102 2014.5
2010
15 21-03- 7275 13115 7.3 14.05 6.75 13240 20.38 102 2078.76
2010
15 22-03- 7420 13000 7.1 13.15 6.05 12790 20.2 102 2060.4
2010
15 23-03- 3254 12712 7.2 13.02 5.82 12370 19.75 102 2014.5
2010
15 24-03- 3348 13000 7 14.06 7.06 13380 20.2 102 2060.4
2010
29 15-03- 8043 15500 7.2 16.52 9.32 15740 24.09 135 3251.75
2010
29 16-03- 2012 15291 7.3 15.58 8.28 15690 23.76 135 3207.9
2010
29 17-03- 9731 8000 7.3 14.17 6.87 7740 12.70 135 1714.5
2010
29 18-03- 2013 15388 7.3 14.36 7.06 15290 23.91 135 3228.25
2010
29 19-03- 8429 15728 7.3 14.49 7.19 10360 24.44 135 3299.58
2010
29 20-03- 6575 15325 7 15.02 8.02 15680 23.82 135 3215.03
2010
29 21-03- 2012 15291 7.3 14.5 7.2 15600 23.76 135 3207.9
2010
29 22-03- 9959 15155 7 15.32 8.32 15350 23.55 135 3179.37
2010
29 23-03- 4329 15275 7.05 14.56 7.51 15470 23.74 135 3204.54
2010

SDMIMD Page 27
 Route Date Tanker Capac Exit Entry Net Net Rate/ Kms T.Cost
No. no. ity time time time weight km
29 24-03- 8574 15985 7 14.49 7.49 15580 24.84 135 3353.49
2010
34 15-03- 6118 14815 7.2 13.32 6.12 14870 23.02 132 3038.97
2010
34 16-03- 7506 14500 7.3 13.57 6.27 14540 22.53 132 2974.36
2010
34 17-03- 9435 9935 7.3 16.13 8.83 8760 12.70 132 1676.4
2010
34 18-03- 8982 15262 9.3 15.54 6.24 14280 23.72 132 3130.66
2010
34 19-03- 6575 15325 7.3 16.04 8.74 9740 23.82 132 3143.59
2010
34 20-03- 4329 15275 7.1 14.46 7.36 14350 23.74 132 3133.33
2010
34 21-03- 5220 14771 7.3 14.22 6.92 14320 22.95 132 3029.95
2010
34 22-03- 8982 15262 7 14.14 7.14 14250 23.72 132 3130.66
2010
34 23-03- 7506 14500 7 14.22 7.22 14302 22.53 132 2974.36
2010
34 24-03- 4329 15275 7 14.43 7.43 14250 23.74 132 3133.33
2010
35 15-03- 2122 10200 7.1 16.47 9.37 9410 15.85 142 2250.81
2010
35 16-03- 9058 10378 7.3 15.14 7.84 9290 16.13 142 2290.09
2010
35 17-03- 3635 7800 7.3 13.49 6.19 6040 12.70 142 1803.4
2010
35 18-03- 6094 10097 7.2 18.59 11.39 10230 15.69 142 2228.08
2010
35 19-03- 9435 9935 7.3 17.41 10.11 14460 12.70 142 1803.4
2010
35 20-03- 6127 10200 7 14.17 7.17 9470 15.85 142 2250.81
2010
35 22-03- 9058 10378 7 20.22 13.22 9580 16.13 142 2290.09
2010
35 23-03- 6127 10200 7 15.28 8.28 9630 15.85 142 2250.81
2010
35 24-03- 5474 11425 7.3 16.44 9.14 11270 17.75 142 2521.13
2010
39 15-03- 3764 15300 7.15 16.22 9.07 14720 23.78 160 3804.19
2010
39 16-03- 8080 15600 7.2 16.25 9.05 14740 24.24 160 3878.78
2010

SDMIMD Page 28
 Route Date Tanker Capac Exit Entry Net Net Rate/ Kms T.Cost
No. no. ity time time time weight km
39 17-03- 2013 15388 7.3 14.42 7.12 14910 23.91 160 3826.07
2010
39 18-03- 7009 11388 7.3 15.23 7.93 13180 17.70 160 2831.51
2010
39 19-03- 9397 14106 7 18.07 11.07 16440 21.92 160 3507.32
2010
39 20-03- 3680 15160 7 14.19 7.19 14240 23.56 160 3769.38
2010
39 21-03- 6641 14097 7.15 18.18 11.03 13570 21.91 160 3505.08
2010
39 22-03- 8482 14370 7 15.27 8.27 13430 22.33 160 3572.96
2010
39 23-03- 7654 14300 7.1 15.54 8.44 14300 22.22 160 3555.55
2010
39 24-03- 6118 14815 7 16.07 9.07 13810 23.02 160 3683.6
2010
40 15-03- 8982 15262 7.4 14.49 7.09 14970 23.72 135 3201.81
2010
40 16-03- 3764 15300 7.2 14.31 7.11 15140 23.78 135 3209.79
2010
40 17-03- 4309 7.3 14.26 6.96 6540 135 0
2010
40 18-03- 1104 12700 7.3 14.01 6.71 12610 19.74 135 2664.33
2010
40 19-03- 1003 16000 7.3 12.48 5.18 14480 24.86 135 3356.64
2010
40 20-03- 2012 15291 7.2 14.25 7.05 14640 23.76 135 3207.9
2010
40 21-03- 3764 15300 7.3 14.58 7.28 14660 23.78 135 3209.79
2010
40 22-03- 6473 15070 7.15 13.59 6.44 14490 23.42 135 3161.54
2010
40 23-03- 9950 7.2 13.45 6.25 14450 135 0
2010
40 24-03- 3764 15300 7.2 14.1 6.9 14650 23.78 135 3209.79
2010
40 24-03- 6966 8170 4.25 1.53 -2.72 8060 12.70 135 1714.5
2010
43 15-03- 9671 12081 7.2 15.43 8.23 10960 18.77 160 3003.82
2010
43 16-03- 7979 12136 8 16.13 8.13 11000 18.86 160 3017.5
2010
43 17-03- 1104 12700 8.1 18.09 9.99 10770 19.74 160 3157.73
2010

SDMIMD Page 29
 Route Date Tanker Capac Exit Entry Net Net Rate/ Kms T.Cost
No. no. ity time time time weight km
43 18-03- 7009 11388 7.3 15.1 7.8 10570 17.70 160 2831.51
2010
43 19-03- 2874 11980 7.3 15.24 7.94 14560 18.62 160 2978.71
2010
43 20-03- 2874 11980 7 15.2 8.2 10700 18.62 160 2978.71
2010
43 21-03- 5944 15200 10.1 13.27 3.12 10610 23.62 160 3779.33
2010 5
43 22-03- 2874 11980 7 14.44 7.44 10750 18.62 160 2978.71
2010
43 23-03- 7009 11388 7 16.44 9.44 10890 17.70 160 2831.51
2010
43 24-03- 2874 11980 7 15.44 8.44 10610 18.62 160 2978.71
2010
49 15-03- 8631 12400 7.15 14.17 7.02 10970 19.27 100 1926.96
2010
49 16-03- 7727 12450 7.3 14.14 6.84 11760 19.35 100 1934.73
2010
49 17-03- 9326 10408 7 15.22 8.22 10660 16.17 100 1617
2010
49 18-03- 0 0 0 0 0 11480 0 100 0
2010
49 19-03- 0 0 0 0 0 13040 0 100 0
2010
49 20-03- 0 0 0 0 0 9380 0 100 0
2010
49 21-03- 0 0 0 0 0 11220 0 100 0
2010
49 22-03- 9731 8000 7.15 13.58 6.43 8210 12.70 100 1270
2010
49 23-03- 8132 11485 7.15 14.3 7.15 11300 17.85 100 1784.77
2010
49 24-03- 5799 12070 7.2 15.05 7.85 11210 18.76 100 1875.68
2010
51 15-03- 6781 14125 7.3 14.25 6.95 13980 21.95 113 2480.38
2010
51 16-03- 9397 14106 7.15 14 6.85 13950 21.92 113 2477.04
2010
51 17-03- 6473 15070 7.3 16.01 8.71 14180 23.42 113 2646.32
2010
51 18-03- 6781 14125 7.3 14.46 7.16 21290 21.95 113 2480.38
2010
51 19-03- 6127 10200 1.2 18.55 17.35 10620 15.85 113 1791.14
2010

SDMIMD Page 30
 Route Date Tanker Capac Exit Entry Net Net Rate/ Kms T.Cost
No. no. ity time time time weight km
51 20-03- 6641 14097 7.2 15.16 7.96 13760 21.91 113 2475.46
2010
51 21-03- 9397 14106 7.2 13.17 5.97 13870 21.92 113 2477.04
2010
51 22-03- 6641 14097 7 14.53 7.53 13850 21.91 113 2475.46
2010
51 23-03- 6118 14815 8.3 14.27 5.97 13600 23.02 113 2601.54
2010

Average transportation per day route wise

Tab 6 Avg. Transportation cost per day- regular routes

Route Avg T.Cost/day
Route 15 2010.52
Route 29 3086.23
Route 34 2936.56
Route 35 2187.62
Route 39 3593.44
Route 40 2448.73
Route 43 3053.62
Route 49 1734.85
Route 51 2433.86
Total 1 23485.46

10.2. Special Routes

Routes operating daily to cover DCS with Milk Production exceeding BMC capacity

Tab 7 Milk Collection data for special routes

Route Avg.
No. Day max c min c c
Sp1 everyday 13520 11200 12360
Sp2 everyday 13650 10450 12050
Sp15 everyday 7120 6670 6895

SDMIMD Page 31
Abbreviations
used:
maximum milk collection from 2nd - 8th
max c = April
min c = minmum milk collection from 2nd - 8th April
Avg. c = Avg, milk collection from 2nd - 8th April

Data for special routes covering DCS under study

Tab 8 Data for 7 days - special routes

Route Truck Capaci Exit Entry Net Rate/ Avg.
no. Date no. ty time time time km Kms T.cost T.Cost/Day
02-04-
Sp1 2010 7563 12300 20 2.02 6.02 19.11 120 2294
03-04-
Sp1 2010 8574 15985 20 2.02 6.02 24.84 120 2981
04-04-
Sp1 2010 2012 15291 20 2.02 6.02 23.76 120 2851
05-04-
Sp1 2010 7133 20 2.02 6.02 120 0
06-04-
Sp1 2010 8982 15262 20 2.02 6.02 23.72 120 2846
07-04-
Sp1 2010 3764 15300 20 2.02 6.02 23.78 120 2853
08-04-
Sp1 2010 2012 15291 20 2.02 6.02 23.76 120 2851 2779.45
02-04-
Sp2 2010 2994 13695 20 3.2 7.2 21.28 140 2979
03-04-
Sp2 2010 6641 14097 20 3.2 7.2 21.91 140 3067
04-04-
Sp2 2010 9326 10408 20 3.2 7.2 16.17 140 2264
05-04-
Sp2 2010 2874 11980 20 3.2 7.2 18.62 140 2606
06-04-
Sp2 2010 5223 12518 20 3.2 7.2 19.45 140 2723
07-04-
Sp2 2010 3398 20 3.2 7.2 140 0
08-04-
Sp2 2010 6118 14815 20 3.2 7.2 23.02 140 3223 2810.52
02-04-
Sp15 2010 7563 12300 20 2.13 6.13 19.11 115 2198
03-04-
Sp15 2010 8574 15985 20 2.13 6.13 24.84 115 2857

SDMIMD Page 32
Route Truck Capaci Exit Entry Net Rate/ Avg.
no. Date no. ty time time time km Kms T.cost T.Cost/Day
04-04-
Sp15 2010 2012 15291 20 2.13 6.13 23.76 115 2733
05-04-
Sp15 2010 7133 20 2.13 6.13 115 0
06-04-
Sp15 2010 8982 15262 20 2.13 6.13 23.72 115 2727
07-04-
Sp15 2010 3764 15300 20 2.13 6.13 23.78 115 2734
08-04-
Sp15 2010 2012 15291 20 2.13 6.13 23.76 115 2733 2208.20
Total
2= 7798.18

Avg transportation cost per day to collect milk from these areas = Total 1 + Total 2
= 23485.46+ 7798.18
= 31283.64

Note:
This avg. transportation cost is calculated for the ideal case i.e considering only normal
minimum route kms and not taking into account the change in route for any reason which
may have increased the kms. This is done so that fair comparison can be made.

SDMIMD Page 33
11.DESIGNED ROUTES

11.1. More economical – High risk

Capacity utilization 92% - 100%

Note: All villages typed in bold have milk production greater than BMC capacity. They have
to be covered in morning and evening routes. Kms mentioned in this are values obtained from
the Public Works Department (PWD) Anand District office.

Morning Routes

Tab 9 Data for designed routes – Morning (High risk)

Route Village Peak Tanker % capacity Kms T.Cost
no. MP Capacity uitilization
1 Bamanwa 4600 41
1 Jalundha 2150 4
1 Piploi 1900 1
1 Popatvav 3800 7
1 Sakarpur 1575 10
14025 14815 94.66 126 2900.52
2 Kalitalvadi 2250 2
2 Timba 1800 2
2 Sayama 1650 2
2 Hariyana 2200 4
2 Malu 1050 9
2 Kanzat 925 2
2 Sundra 1700 1
2 Dhariyapura 1500 47
13075 13695 95.47 138 2936.64
3 Vatadra 2600 2
3 Khatnal 2550 7
3 Dali 1550 42
3 Khadodhi 1150 3
3 Kalamsar 5000 2
3 Dhuvaran 1800 3
14650 15500 94.51 118 2842.62
4 Lunej 1050 61
4 Malasoni 2000 2
Juni
4 Daheda 1700 2
4 Vainaj 800 10

SDMIMD Page 34
Route Village Peak Tanker % capacity Kms T.Cost
no. MP Capacity uitilization
4 Pandad 1050 5
4 Gudel 1000 3
4 Sokhada 1800 1

4 Neja 1200 3
4 Nagra 4000 5
14600 15300 95.42 184 4375.52
5 Milti 1350 0
5 Tarakpur 1100 93
5 Khakhsar 1500 0
5 Valli 1500 0
5 Padra 1800 1
5 Jahaj 4850 0
12100 12700 95.27 188 3711.12
6 Isarwada 2500 42
6 Mahiari 1400 4
6 Budhej 2000 0
6 Sath 1150 0
6 Mobha 675 0
6 Khanpur 1500 4
6 Jichka 1500 3
6 Laxmipura
10725 12070 88.8566694 106 1988.56
Total 18754.98
1=

SDMIMD Page 35
Evening Routes

Tab 10 Data for designed routes – Evening (High risk)

Route Village Peak Tanker % capacity Kms T.Cost
no. MP Capacity uitilization
1 Jalsan 4600 1
1 Finav 4560 45
1 Kanzat 925 3
1 Malu 1050 8
11135 12070 92.25352113 114 2138.64
13115 84.90278307 114 2437.32
2 Nanakalodra 2650 0
2 Sakarpur 1575 54
2 Lunej 1050 12
2 Vainaj 800 14
2 Pandad 1050 3
2 Mitli 1350 9
2 Valli 1500 8
2 Aamliara 1400 7
2 Sath 1150 8
2 Mobha 675 48
13200 13695 96.38554217 163 3468.64
15300 86.2745098 163 3876.14
3 Vasana 2500 1
3 Ralaj 4800 51
3 Bhuvel 1900 4
3 Dali 1550 6
3 Kathana 2450 3
3 Khadodhi 1150 3
14350 14815 96.86128923 136 3130.72
15300 93.79084967 136 3234.08
Total 2 = 8738
Total 2 9547.54
option=

Total = Total 1+ Total 2

27492.98
Actual T.Cost= 31283.64

Saving per day 3790.66

Saving per year 1383591.59

SDMIMD Page 36
Total (option 2) = Total 1 + Total 2 Option
28302.52
Actual T.Cost= 31283.64

Saving per day 2981.12

Saving per year 1088109.49

11.2. Less economical – low risk

Capacity utilization 85% - 92%

Morning Routes

Tab 11 Data for designed routes – Morning (Low risk)

Route Peak Tanker % capacity
no. Village MP Capacity uitilization Kms T.Cost
1 Bamanwa 4600 41
1 Jalundha 2150 4
1 Piploi 1900 1
1 Popatvav 3800 7
1 Sakarpur 1575 10
14025 15388 91.14244866 126 3012.66
2 Kalitalvadi 2250 2
2 Timba 1800 2
2 Sayama 1650 2
2 Hariyana 2200 4
2 Malu 1050 9
2 Kanzat 925 2
2 Sundra 1700 1
2 Dhariyapura 1500 47
13075 14815 88.25514681 138 3176.76
3 Vatadra 2600 2
3 Khatnal 2550 7
3 Dali 1550 42
3 Khadodhi 1150 3
3 Kalamsar 5000 2
3 Dhuvaran 1800 3
14650 15985 91.64842039 118 2931.12
4 Lunej 1050 61
Malasoni
4 Juni 2000 2

SDMIMD Page 37
Route Village Peak Tanker % capacity Kms T.Cost
no. MP Capacity uitilization
4 Daheda 1700 2
4 Vainaj 800 10
4 Pandad 1050 5
4 Gudel 1000 3
4 Sokhada 1800 1
4 Neja 1200 3
4 Nagra 4000 5
14600 15500 94.19354839 184 4432.56
5 Milti 1350 0
5 Tarakpur 1100 93
5 Khakhsar 1500 0
5 Valli 1500 0
5 Padra 1800 1
5 Jahaj 4850 0
12100 13695 88.35341365 188 4000.64
6 Isarwada 2500 42
6 Mahiari 1400 4
6 Budhej 2000 0
6 Sath 1150 0
6 Mobha 675 0
6 Khanpur 1500 4
6 Jichka 1500 3
6 Laxmipura
10725 12070 88.85666943 106 1988.56
Total 1
= 19542.3

SDMIMD Page 38
Evening routes

Tab 12 Data for designed routes – Evening (Low risk)

Peak Tanker % capacity
Route no. Village MP Capacity uitilization Kms T.Cost
1 Jalsan 4600 1
1 Finav 4560 45
1 Kanzat 925 3
1 Malu 1050 8
11135 12700 87.67716535 114 2250.36
2 Nanakalodra 2650 0
2 Sakarpur 1575 54
2 Lunej 1050 12
2 Vainaj 800 14
2 Pandad 1050 3
2 Mitli 1350 9
2 Valli 1500 8
2 Aamliara 1400 7
2 Sath 1150 8
2 Mobha 675 48
13200 14815 89.09888626 163 3752.26
15300 86.2745098
3 Vasana 2500 1
3 Ralaj 4800 51
3 Bhuvel 1900 4
3 Dali 1550 6
3 Kathana 2450 3
3 Khadodhi 1150 3
14350 15985 89.77166093 136 4058.24
15500 92.58064516
Total 2
= 10060.86

Total Avg. transportation cost per day = Total 1+ Total 2 = Rs. 29603.16

Actual calculated Transportation cost per day = Rs. 31283.64

Saving per day = Rs. 1680.48

Savings per year = Rs. 613375.9

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12.RECOMMENDATIONS

1. Detailed Taluka wise records should be maintained with following data:

a. List of DCS with BMC installed
b. List of DCS in process of BMC installation and time duration for the same
c. List of DCS in process of registration and if BMC installation is required
there
d. List of villages likely to join

These records should be referred to when any route planning is done.

2. Instead of covering all the DCS without under capacity problem in the morning they
should be distributed in morning and evening routes (evening routes compulsorily
covering DCS with under capacity problem.). This has the following advantages
a. Lesser transportation cost
b. Less O/Hs
c. Less manpower requirement (supervisors who accompany tanker drivers)
d. Better tanker management
e. Better capacity management at all levels
f. Increase profits
g. This will lead to different arrival timings for the tankers which will reduce if
not solve the queuing problem observed at AMUL 3 plant between 3pm –
7pm.
As per the report provided by Vehicle Monitoring Cell, KDCMPUL, Anand over 100
DCS are going to face under capacity problem in the peak season in 2011. If not today
in future the DCS have to be prepared to operate at timings suitable for milk tankers.
This, is necessary for proper milk procurement and to avoid problems in handling
excess milk over the capacity. If this is the case then why not negotiate with the DCS
today and give them better returns. It will be a win-win situation for the farmers, DCS
and KDCMPUL.

3. Software for computerized route design can be developed. This software can be
customized to suit the requirements of AMUL:
a. To form routes as per given multiple constraints like capacity, timing etc
b. Identify pattern of regular disturbances/ happenings in a particular route
c. Enable route mapping

4. Routes should be designed separately for peak, off- peak and transition seasons.

5. BMC capacity installation should be synchronized with estimated collection of milk.

SDMIMD Page 40
 6. During the course of project it was observed that in some DCS BMC capacity was not
utilized even up to 50% in peak season where as other DCS faced under capacity
problem due to low BMC storage space. Such villages can be identified and BMCs
could be exchanged in order to save on transportation and other costs.
Eg: Islampura, BMC capacity 2000 has a peak MP of 950ltrs. This BMC could be
exchanged with that of Valli, BMC capacity 1000 with peak MP of 1500ltrs. This way
BMC capacity utilization is better and transportation cost of covering village twice
due to BMC under capacity will be reduced.

SDMIMD Page 41
13.CONCLUSION

By this study it is revealed that, little modification in route design can lead to a lot a saving in
transportation and other costs. However, due to unpredictable variations in the milk collection
at different DCS, it is not advisable to plan very high capacity utilization in term of tanker
capacity for tankers assigned to different routes. Some allowance should be considered for
this variation. A healthy capacity utilization percentage would be in the range of 80% to 90%.

If these 12 routes are designed as suggested by this project, per day saving for this zone will
be Rs. 1,680 and yearly saving would be Rs. 6, 13,375 even on a low risk route. Tanker
capacity utilization on a low risk route was between 82% to 90%.

If this procedure is followed for all the 75+ routes covering 540+ DCS, the resultant savings
would be substantial, though not proportional.

This saving could be achieved primarily by considering flexibility in timing of milk

procurement from different DCS. This is not in practice currently and as of now all milk
tankers serving DCS with sufficient storage (BMC) capacity are sent for milk procurement
only in the mornings. If some compromise can be made here it will benefit in terms of
transportation cost, better tanker management, reduction in queuing problem, better capacity
utilization and lesser routes.

SDMIMD Page 42
14.APPENDICES

APPENDIX A List of tankers available for covering villages under study

No. of villages to be covered = 54

Liters of milk to be collected from these villages = 123295L

No. of tankers available for milk collection from these villages = 12

Capacity of tankers available:

1. 15985L
2. 15500L
3. 15388L
4. 15325L
5. 15300L
6. 13695L
7. 13115L
8. 10378L
9. 14815L
10.15300L
11.12700L
12.12070L

SDMIMD Page a
APPENDIX B List of rates for different capacity of milk tankers

Sr. no. Tanker Capacity Rate Sr. no. Tanker Capacity Rate
No. (Rs./Km) No. (Rs./Km)
1 1335 5000 10.89 45 5458 13840 21.51
2 5791 5250 10.89 46 6641 14097 21.91
3 8303 5250 10.89 47 9397 14106 21.92
4 6494 5300 10.89 48 6781 14125 21.95
5 6428 5067 10.89 49 7654 14300 22.22
6 6116 8660 12.70 50 8482 14370 22.33
7 3600 7767 12.70 51 7506 14500 22.53
8 1566 7679 12.70 52 7918 14540 22.60
9 6026 7700 12.70 53 1692 14616 22.71
10 3635 7800 12.70 54 5220 14771 22.95
11 3643 7800 12.70 55 6118 14815 23.02
12 9731 8000 12.70 56 6177 14825 23.04
13 6966 8170 12.70 57 6473 15070 23.42
14 7081 8213 12.70 58 9959 15155 23.55
15 9435 9935 12.70 59 3680 15160 23.56
16 6094 10097 15.69 60 5944 15200 23.62
17 2122 10200 15.85 61 8982 15262 23.72
18 6127 10200 15.85 62 4329 15275 23.74
19 9058 10378 16.13 63 2012 15291 23.76
20 6073 11175 17.37 64 3764 15300 23.78
21 7009 11388 17.70 65 6575 15325 23.82
22 5474 11425 17.75 66 2013 15388 23.91
23 8132 11485 17.85 67 8043 15500 24.09
24 1224 11912 18.51 68 8080 15600 24.24
25 2874 11980 18.62 69 8429 15728 24.44
26 6165 12044 18.72 70 8574 15985 24.84
27 5799 12070 18.76 71 1003 16000 24.86
28 9671 12081 18.77 72 8042 16300 25.33
29 7979 12136 18.86 73 2014 16504 25.65
30 8822 12150 18.88 74 8617 17290 26.87
31 7563 12300 19.11 75 7632 8184 12.70
32 8631 12400 19.27 76 9325 10291 15.99
33 7727 12450 19.35 77 9326 10408 16.17
34 5223 12518 19.45
35 6046 12600 19.58
36 1104 12700 19.74
37 3254 12712 19.75
38 5198 12950 20.12
39 3348 13000 20.20
40 7420 13000 20.20
41 4782 13053 20.28
42 7275 13115 20.38

SDMIMD Page b
APPENDIX C Existing routes

Special routes

Special route 1: Jalsan, Kanzat, Sayma, Hariyan, Vatadara, Bhuvel 120Kms

Special route 2: Vainaj, Sokhada-kh, Neja, Vadola, Piploi 140 Kms

Special route 3: Nagara,Vasana-kh,Vadadala-p 115 Kms

Regular routes

Route no. 15
Sr.no. Code Village Capacity
no.
1 150 Jallaundh 2150
2 149 Piploi 1900
3 126 Finav 4560
4 121 Bamanva 4600
13210
Route no. 29
Sr.no. Code Village Capacity
no.
1 235 Sayma 1650
2 237 Kalitalavadi 2250
3 239 Nagra 4000
4 768 Santh 2300
5 767 Budhej 1650
6 250 Moraj 2100
7 193 Iswarvada 2500
8 247 tarapur 1100
17550

Route no. 34
Sr.no. Code Village Capacity
no.
1 642 Sakkerpur 3150
2 329 Vasana -Kh 2500
3 330 Ralej 4800
4 165 Kamlasar 5000
15450

SDMIMD Page c
 Route no. 35
Sr.no. Code Village Capacity
no.
1 255 Sundra 1700
2 820 Dhariyapura 1500
3 347 Kanzat 1850
4 913 Vainaj 1600
5 1018 Juni - Malasoni 2000
6 123 Jalsan 4600
7 919 Sokhada-kh 1800
8 920 Neja 1200
9 604 Jinaj
10 346 Kanisa 35
16285

Route no. 39
Sr.no. no. Village Capacity
1 867 Mahiyari 1400
2 869 Khanpur Kh 1500
3 872 Valli 1500
4 873 Khakhsar 1500
5 877 Jichaka 1500
6 874 Padra 1800
7 911 Pandad 2100
8 876 Ambaliara-kh 1400
9 916 Gudel 1000
10 195 Lunej 2100
15800

Route no. 40
Sr.no. Code Village Capacity
no.
1 459 Hariyana 2200
2 328 Nanakalodra 2650
3 122 Vatadra 2600
4 153 Khatnal 2550
5 132 Jahaj 4850
6 456 Mobha 1350
7 1097 Islampura 950
17150

SDMIMD Page d
 Route no. 43
Sr.no. Code Village Capacity
no.
1 501 Chitravada 1500
2 480 Rinza 2100
3 909 Mitli 2700
4 203 Valandapura 1000
7300

Route no. 49
Sr.no. no. Village Capacity
1 1063 Dhuvaran 1800
2 660 Khadodhi 2300
3 135 Dali 3100
4 137 Kathana 2450
9650

Route no. 51
Sr.no. Code Village Capacity
no.
1 168 Bhuvel 1900
2 231 Vatra 3400
3 436 Vadola 3150
4 163 Popatvava 3800
5 161 Timba 1800
14050

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APPENDIX D Anand District road map

SDMIMD Page f
15.REFERENCES

1. Introduction To Operations Research: Concepts And Cases by Frederick Hillier and

Gerald Lieberman

2. Annual report 2009-2010, Vehicle monitoring division, KDCMPUL, Anand

3. Anand District road map

4. Google Earth

5. United Nations Development Programme

website : http://www.undp.org/

6. Wikipedia- AMUL
website: http://en.wikipedia.org

7. AMUL
website: http://www.amul.com/

8. GCMMF 35th Annual Report: 2008-2009

9. OTHER REFERENCES

a. OTS reports : IRMA library

b. Working paper :Prof. Janak Shah

SDMIMD Page g