If any two shops require the stocks and if they are located nearby to each other in the adjacent sectors (east and south), then one vehicle will be sufficient to replenish the stocks to the two shops. The same can be extended to two, three, etc., number of shops considering the distance and the load. Another most important factor to be considered is the traffic in the city which will delay the delivery resulting in the dissatisfaction of the customers with the factory. The distance of the shop outlet to be recorded in the sheet must be the shortest distance with free of heavy traffic. A delivery to a shop outlet can have various traveling path but while locating the path for the delivery, it should be taken care that a traffic free path is chosen which will be better than getting into traffic path. In case, there are many shop outlets located in a single sector (any one region), then the number of vehicles to complete the delivery will be reduced. From the above points, it is very clear that the delivery plan depends on four factors namely location of the shop outlets, number of shop outlets in a location, various travel paths and distance of the shop outlet from the factory.
2. Explain the techniques used to retain firm control of transport costs
The transport costs can be controlled by efficiently planning the deliveries with respect to the shop location, number of outlets in a location, travel distance, travel path, availability of vehicle and availability of vehicle drivers. Each time when a delivery is initiated, it can be made a regular task of recording the start time, distance in kilometers traveled acknowledged by the shop outlet to the factory so as to be aware among few drivers who will simply record more distance for higher pay. A cost benefit analysis can be made with these details on periodical basis which will be useful to track the cost controlling. The recording of kilometers will help to minimize the diesel fuel cost and also avoid being cheated by the drivers. The pay to the drivers for delivering the stocks should be reasonable. At the same time, it should not be the case of committing a unreliable driver who is ready to accept low pay. The pay should be made in such a way that driver is reliable all the time. The vehicles should undergo periodical maintenance to reduce the cost on repairs. Even if the vehicle is operating for a long time (beyond one year) without any problem, the maintenance on the particular stipulated date should be done and reported since it might result in accumulated repairs which will result in increase of the maintenance cost per year. The training cost for the drivers should be the least one and for that drivers who are well trained and aware of the routes in the city can be selected. This may include some cost of testing the driver. The temporary use of staff will be affecting the costs more since the drivers demand more pay when they are asked to make an immediate delivery. At that time of demand, it becomes essential to use them so as to satisfy the customers and to retain their