It depends what you mean. The average distance from the organisation to each customer? Or the shortest way to serve all customers?

Hi,Peggy Peters

How are you?

About your question, please explain more about relationships of customers and organizations for me

Thanks a lot

Reza

Dear Tom Broekel ,

Thank you for taking the time to read my question.

The aim is to find a formula which can give me an estimation of the distance driven every day.

I'm trying to build a model in Excel, which can calculate the cost when a company chooses to insource their logistics. Therefore, I need a formula which can give an estimation, so I can use that in my cost-model.

The company has not yet served this area, so they don't know anything about the distance.

I hope this answers your question.

If not, please let me know.

Thanks again,

Peggy Peters

Dear Reza Jamei ,

Thank you as well for taking the time to read my question.

The organization is a drycleaner that will pick-up the clothes and delivers them back to the customer after the clothes are dry-cleaned.

So the company needs to make two stops at every customer, with three days apart from each other.

I hope this answers your question.

If not, please let me know.

Thanks again,

Peggy

Hi Peggy - I will not answer quer question directly, but are you aware that there is a varied amount of software out to help in that matter? The company I am employed in, distributes beverages in urban centres, and relies on software to calculate distances, delivery times, distribution costs etc. If your company already is operational, it might be worth looking into te choices available on the market, as they help plan and allow cost comparisons. The best are all map-oriented, like a GPS, so they factor in when the road is one-way, or blocked, etc. In your case, even if you end up not insourcing, it might help to keep your current service provider in check/under control, and be worth the investment. Best regards and good luck

The software based on GIS and GPS are available. If you don't require a particular equations and more interested towards the final results like average distances in your case, you should directly use them to estimate your object factor. It just require is to assign the organization's service radius and to develop links where the organization is going to serve.

Dear Ramesh Thadani & Janak Parmar ,

Thank you for your recommendations! I suppose there is no free software available to calculate this? The company is in its start-up fase and not in a position to spend money on this kind of software unfortunately.

Because it sounds absolutely perfect for my cost-model.

Kind regards,

Peggy Peters

Hi, Peggy Peters

You can get crack versions online of some of the software like, ArcGIS.

Since, your work is not much complicated, you do not require to get tools or extensions to this software.

Hi, Janak Parmar ,

I will check if that software is useful to me! Thank you so much!

Hi Peggy, some software licences are free (trial) for 30 days. It might be worth checking out these options too.