Spain Shipping

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Share the following information with the candidate upon request:

• Each day 1,000 packages need the delivery.
• Packages are envelope-format and go through the mailbox with dimensions of 1x1x1.
• Delivery service runs 5 days a week from 09.00 AM to 06.00 PM for 9 hours.
• It takes on average 10 minutes to deliver each package.
• Packages are dropped off by DHL, FedEx, and UPS at 05.00 PM, then stored overnight and delivered the next day.

The candidate should explain her structure on how to approach the case which should include:

• Required packages delivered per day.
• Working hours & days of operations.
• Average delivery time per package.
• Size & dimensions of each package.

Moreover, candidates should ask for data on available truck models, their associated costs & load capacity.

The first step is to calculate the number of trucks we need on a daily basis to deliver all 1,000 packages.

We work 9 hours a day and take 10 minutes to deliver each package, so we can deliver 54 packages each day.

We need to calculate the total daily costs for each model with 19 trucks.

The cost-effective & optimized solution is to take 28 trucks of Model B which helps us meet our daily load & minimizes daily lease costs.

The reason why we multiply the daily cost with a minimum of 19 trucks is that we need 19 trucks every day to deliver 1,000 packages. One driver can only deliver 54 packages a day.

So we either take the minimum of 19 trucks unless a model gives us a higher number of trucks such as Model B. In that case, we need the full amount of trucks to cover 1,000 packages per day.

This is a clear example of how using a high number of smaller trucks to benefit from lower costs and a de-centralized approach.