Supply Chain Optimization

A retail operation has 40 stores. The forty stores are segmented into 4 different regions. The current market rate for trash is $0.15 for up to 15,000 lbs picked up per location by a trash hauling company, per pickup. If picking up more than 15,000 lbs of trash per location, the rate decreases to $0.08 per lb. Each store contributes 5,000 lbs of trash per month.

Region A: 8 stores

Region B: 12 stores

Region C: 16 stores

Region D: 4 stores

The trucking routes are segmented per region. Once per week, a truck goes from Region A to Region B. From Region B to Region C, and from Region C to Region D. Every time a truck goes from a store to another store in the same region, the cost is $100 per truck route. The trash needs to be picked up weekly per store. Cost is $75 each time trash is transferred from one store to another store or to a centralized facility within the same region. The cost to move trash from one region to another region is $150 per truck per day. This truck can hold 45,000 lbs per move. Optimizing for cost savings, what is the best way to move forward with a trash strategy for the stores?