Product details

This is part of a case series. This case deals with the fleet assignment challenges faced by Aisha Deshmukh, the Operations Manager of Royal Home-Food, a home-cooked food delivery start-up based out of Hyderabad, India. While keeping the operating cost low is beneficial for the bottom lines, penalty cost of unfilled deliveries has severe implications on the top-line of Royal Home-Food. Deshmukh works out a MILP based optimization model to find the optimum allocation of her fleet of vehicles to customer zones. However, she realizes that even though she has an optimum solution, she is not able to reduce the penalty costs and revenue losses to zero. The main reason attributed to this is the limited vehicle capacity. She has to evaluate capacity expansion choices and associated financial implications.