Current Target

Stops (Orders) / hr 2.7 2.7 4 4

Avg. delivery hours per 13 14.5 13 14.5
truck per day
# of orders / truck 35.1 39.15 52 58
# of trucks in fleet 55 55 55 55
Avg. # of orders / day 1930.5 2153.25 2860 3190

Current Target
Stops (Orders) / hr 2.7 2.7 4 4
Avg # of orders / day 1125 5000 1125 5000
Variable cost per hr 30 30 30 30
Cost / stop (order) 11.11 11.11 7.50 7.50
Delivery cost / day 12500 55556 8438 37500
Days per year 360 360 360 360
Delivery cost / yr (mn $) 4.5 20.0 3.0 13.5
 Average Average Fixed time Fraction of Trucks # of
Coverage Area Dmd per value per Margin (Stem + dmd to serve needed trucks
day order per order Setup) assigned

Toronto 390 135 20.25 1.5 1 11 11

North York 282 135 20.25 1.5 1 8 8
Mississauga 112 135 20.25 1.5 1 3 3
Newmarket / Aurora 54 135 20.25 1.5 1 2 2
Etobicoke 45 135 20.25 1.5 1 2 2
Richmond Hill 43 135 20.25 1.5 1 2 2
Brampton 40 135 20.25 1.5 1 2 2
Oakville 33 135 20.25 1.5 1 1 1
Scarborough 33 135 20.25 1.5 1 1 1
Vaughan 33 135 20.25 1.5 1 1 1
Pickering/Ajax 23 135 20.25 1.5 1 1 1
Burlington 21 135 20.25 1.5 1 1 1
Georgetown 6 135 20.25 1.5 1 1 1

Total Trucks Assigned

36
COGS (% of Order Value) 85%
Gross Mgn +
Shifts per day 2 Del fee 8141889
Annual
Time per shift (hrs) 8.5 Delivery cost 6609600
Stops per hr 2.7 Net Margin 1532289
Variable cost / truck hr 30 Warehouse 700000
Fixed cost
Dmd scales by 1 per truck 10000
Days per year 360 Annual Profit 282289
Delivery fee per order 0
 Avg.
Capacity - Trucks needed Net profitability (per Profitability
Demand for full dmd day) at full dmd per truck

0 >= 0 11 2287.5 208.0

0 >= 0 8 1621.8 202.7
0 >= 0 3 743.8 247.9
0 >= 0 2 82.2 41.1
0 >= 0 2 -117.4 -58.7
0 >= 0 2 -143.5 -71.7
0 >= 0 2 -204.2 -102.1
0 >= 0 1 166.9 166.9
0 >= 0 1 166.9 166.9
0 >= 0 1 166.9 166.9
0 >= 0 1 -41.4 -41.4
0 >= 0 1 -76.1 -76.1
0 >= 0 1 -397.2 -397.2

<= Available
<= 55

(15 million over 20 years)

(50000 over 5 years)
 Average Average Fixed time Fraction of
Dmd per value per Margin Trucks
Coverage Area # of shifts (Stem + dmd to
order per order needed
day Setup) serve

Toronto 390 135 20.25 2 1.5 1 11

North York 282 135 20.25 2 1.5 1 8
Mississauga 112 135 20.25 2 1.5 1 3
Newmarket / Aurora 54 135 20.25 2 1.5 1 2
Etobicoke 45 135 20.25 1 1.5 1 3
Richmond Hill 43 135 20.25 1 1.5 1 3
Brampton 40 135 20.25 1 1.5 1 3
Oakville 33 135 20.25 2 1.5 1 1
Scarborough 33 135 20.25 2 1.5 1 1
Vaughan 33 135 20.25 2 1.5 1 1
Pickering/Ajax 23 135 20.25 1 1.5 0 0
Burlington 21 135 20.25 1 1.5 0 0
Georgetown 6 135 20.25 1 1.5 0 0

Total Trucks

COGS (% of Order Value) 85%

Gross Mgn +
Shifts per day 2 Del. Fee 7776347
Annual
Time per shift (hrs) 8.5 Delivery cost 5783400
Stops per hr 2.7 Net Margin 1992947
Variable cost / truck hr 30 Warehouse 700000
Fixed cost
Dmd scales by 1 per truck 10000
Days per year 360 Annual Profit 742947
Delivery fee per order 0
 # of Avg.
trucks Capacity - Trucks needed Net profitability (per Profitability
Demand for full dmd day) at full dmd
assigned per truck

11 0 >= 0 11 2287.5 208.0

8 0 >= 0 8 1621.8 202.7
3 0 >= 0 3 743.8 247.9
2 0 >= 0 2 82.2 41.1
3 0 >= 0 3 137.6 45.9
3 0 >= 0 3 111.5 37.2
3 0 >= 0 3 50.8 16.9
1 0 >= 0 1 166.9 166.9
1 0 >= 0 1 166.9 166.9
1 0 >= 0 1 166.9 166.9
0 0 >= 0 2 -41.4 -20.7
0 0 >= 0 2 -76.1 -38.0
0 0 >= 0 1 -142.2 -142.2

Assigned <= Available

36 <= 55

(15 million over 20 years)

(50000 over 5 years)