Waste Oil Wagon
Waste Vegetable Oil
Collection Service
Jerry Robock and Josh Levin
Our Service
 Waste Oil Wagon (WOW) will provide a
service to the restaurant and food processing
industry by helping to manage the
accumulation, storage and disposal of waste
oil.
 WOW, acting as an intermediary, will deliver
this WVO to a biodiesel refinery for
conversion into biodiesel motor fuel.
The Landscape (Competition)
 There are currently national and regional waste removal





companies that collect waste food preparation oils for a fee.
These companies typically process this waste oil into
intermediate products that are then sold for industrial uses.
In the past this waste oil had some commodity value and waste
haulers would either pay the restaurant or food processor for the
waste oil or collect it for free.
With the advent of Mad Cow disease, waste oil that contains
animal products is no longer suitable in the manufacture of
animal feed and the market for the intermediate product,
normally called yellow grease, shrank.
Restaurants and waste oil producers now must pay a fee to
have their waste oil removed.
In concert, waste haulers have fewer markets for their
intermediate product.
Strategies
 In setting up WOW, there may be initial
competition from the current waste oil haulers
for this business.
 WOW will implement two initial strategies;


start with a very small foot print and
compete on price.
Setting up the Day to Day business
 The scale of this business must complement the
biodiesel refinery capacity. For example, if the
target refinery daily capacity is 600 gallons, then
the collection service must meet or exceed this
level of service.
 Components of Service:




Vehicle
recycling containers
temporary storage
scheduling
Vehicle
 In order to do this, a vehicle is need with either




sufficient capacity to make a single run or efficient
enough to make multiple runs.
The type of storage that a customer will have will
determine the type of vehicle needed.
If the supplier (restaurant or other source of WVO) is
provided 55 gallon drums to collect their WVO, a flat
bed truck with a lift gate may be most appropriate.
If the supplier refills the 5 gallon jugs the oil came in
with waste oil, a pickup truck may suffice.
If a more permanent receptacle exists a vehicle with
a pump and storage tank would work best.
55 gallon drum collection
Back Alley Storage
55 Gallon Drums
Flat bed with lift gate for drums
After collecting
Bulk collection from bins
Pump truck
So where’s the money?
 At this time most suppliers pay a commercial hauler
to remove their waste vegetable oil. These
companies typically process the WVO into yellow
grease (tallow) and sell it to manufacturers in the
cosmetic, pharmaceutical or animal feed industries.
They charge a fee from the supplier of WVO and
make money selling tallow. WOW will have a similar
business model but will charge less to the supplier (or
perhaps nothing) and charge the biodiesel refiner for
the WVO. The margins should be quite healthy as
the WVO will be collected locally and delivered
locally.
An example
 Let’s assume that the biodiesel refinery has a capacity of 600






gallons per day. WOW would have to collect at least this
amount each day.
Assuming a restaurant uses 50 gallons of vegetable oil a week,
do you service them weekly, bi-weekly, monthly?
If you service them bi-weekly, then each collection would yield
100 gallons.
Therefore, each day you would need to collect waste oil from 6
suppliers to meet the 600 gallon/day refinery capacity.
If you need 6 suppliers per day, you would then need 42
suppliers per week and 84 total suppliers since you are
collecting bi-weekly.
How large a geographic area would you need to find 84
suppliers?
Are there more optimal configurations?
Basic Capacity Model
Using the previous example, demand of 600 gallons/day, your physical
plant would scale to 200,000 gallons annually.
Assumptions
Demand
Days for Production
Days for Sales (5 days a week)
% Feedstock to B100
Required Feedstock
Annual
200,000
340
261
105%
210,000
Daily
767
618
To supply 600 gallons/day, using the previous assumptions, you would
need 148 suppliers with an average weekly production of 50 gallons.
FeedStock Analysis
Avg Customer Weekly Vol (Gals)
Frequency of Collection (week)
Avg Collection Amount/Customer
# of Cust Daily to Collect
Number of Customers
Annual
2,600
2
Week
50
100
6
74
Sample Survey Results
Restaurant Name
Street Address
City
State
Zip Code
Telephone
Type
Arturos 19th Hole
Bella Luna
Burger King
Burger King Corp
China Style Restaurant
Coachlight Inn
Desert Moon Cafe Inc
Dunkin Donuts
Empire Hunan
Friearys Pub
Friendly Ice Cream Corp
Friendly Ice Cream Shops
Hanover
J B Danigans
Jennifers Restaurant
Kentucky Fried Chicken
Marias Italian Pizza
Marias Restaurant
Matildef International Restaurant
Miraggio Northern Italian Cuisine
Paul Mas China Kitchen
Peter Pratts Inn
Pita Market
Starbucks Coffee Co
Subway
Sue & Hai Chinese Restaurant
The Inn At Yorktown Heights
Wok & Roll
Yorktown Colonial Restaurant & Diner
A&P
Turcos
IBM Watson Research Center Cafeteria
Mercy College Main Café
1500 Baldwin Rd
368 Downing Dr
650 Lee Blvd
385 Downing Dr
1923 Commerce St
1927 Commerce St
650 Lee Blvd
374 Downing Dr
1975 Commerce St
2729 Quinlan
Jefferson Valley Mall
1977 Commerce St
355 Kear St
No Street Address
No Street Address
366 Downing Dr
2041 Saw Mill River Rd
345 Kear St
34 Triangle Shopping Ct
90 Triangle Shopping Ct
2020 Crompond Rd
No Street Address
650 Lee Blvd
1932 Commerce St
1992 Commerce St
2020 Crompond Rd
2026 Saw Mill River Rd
No Street Address
o Street Address
Triangle Plaza
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
Yorktown Heights
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
10598-5818
10598-4426
10598-1100
10598-4424
10598-4409
10598-4409
10598-1100
10598-4426
10598-4411
10598-2707
10598-0000
10598-4411
10598-4415
10598-0000
10598-0000
10598-4426
10598-4107
10598-4425
10598-0000
10598-0000
10598-4231
10598-0000
10598-1100
10598-4410
10598-4412
10598-4231
10598-4108
10598-0000
10598-0000
10598-0000
10598-0000
10598-0000
10598-0000
(914) 962-1217
(914) 243-6859
(914) 245-5790
(914) 962-5761
(914) 245-8123
(914) 962-9780
(914) 245-7801
(914) 962-2191
(914) 962-5500
(914) 664-9795
(914) 245-2522
(914) 962-3075
(914) 962-1800
(914) 245-8115
(914) 962-4298
(914) 245-2882
(914) 962-3583
(914) 962-1040
(914) 245-1483
(914) 248-6200
(914) 962-7996
(914) 962-4090
(914) 243-5723
(914) 243-5997
(914) 962-0855
(914) 962-7996
(914) 962-4040
(914) 962-2300
(914) 245-2191
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Restaurant
Grocery
Grocery
Cafeteria
Cafeteria
Yorktown Total
Strang Blvd
Weekly Vol
30
60
150
150
100
40
25
90
100
20
40
40
25
25
40
160
40
25
30
140
100
30
30
100
40
100
90
100
100
120
60
2,200
Questions
 Using the previous analysis, the following questions
need answers:





Can you efficiently collect from 6 suppliers in a day?
What is the optimal method for collecting 100 gallons
at a time? Drum? Pails? Pump out?
From the survey data, there are not 74 WVO suppliers
in the Yorktown area. Do you build a smaller plant or
venture far and wide?
WVO volumes vary by supplier. Should you exclude
small producers and drive farther to include larger
ones?
Which comes first, determine the capacity of the plant
or the availability of the supply? How do you decide?
Collection Analysis
Restaurant Name
Weekly Distance Avg Time
Vol
from Plant to collect
(30 Mph)
Assumptions =>
Arturos 19th Hole
Bella Luna
Burger King
Burger King Corp
China Style Restaurant
Coachlight Inn
Desert Moon Cafe Inc
Dunkin Donuts
Empire Hunan
Friearys Pub
Friendly Ice Cream Corp
Friendly Ice Cream Shops
Hanover
J B Danigans
Jennifers Restaurant
Kentucky Fried Chicken
Marias Italian Pizza
Marias Restaurant
Matildef International Restaurant
Miraggio Northern Italian Cuisine
Paul Mas China Kitchen
Peter Pratts Inn
Pita Market
Starbucks Coffee Co
Subway
Sue & Hai Chinese Restaurant
The Inn At Yorktown Heights
Wok & Roll
Yorktown Colonial Restaurant & Diner
A&P
Turcos
IBM Watson Research Center Cafeteria
Mercy College Main Café
Yorktown Total
30
60
150
150
100
40
25
90
100
20
40
40
25
25
40
160
40
25
30
140
100
30
30
100
40
100
90
100
100
120
60
2,200
5
6
2
2
3
1
1
5
1
1
3
5
1
1
5
4
1
1
1
1
1
1
2
5
1
1
1
3
5
1
1
1
5
4
30
10
10
15
5
5
25
5
5
15
25
5
5
25
20
5
5
5
5
5
5
10
25
5
5
5
15
25
5
5
5
25
20
385
Transit Avg Time to Number
Avg
Total Avg Time Collection
Cost to
Collect
of
Time per Time
per Pail
Cost/
Collect
Pumpout
Drums
Drum
with
(min)
using
(30 Mph (gal/min)
(min)
Drums
Drums
& $/hour) assumes 5
min setup
$ 60
10
4
1
12
4
4
6
2
2
10
2
2
6
10
2
2
10
8
2
2
2
2
2
2
4
10
2
2
2
6
10
2
2
2
10
8
8
11
20
20
15
9
8
14
15
7
9
9
8
8
9
21
9
8
8
19
15
8
8
5
5
15
9
15
14
15
15
17
11
385
1
2
3
3
2
1
1
2
2
1
1
1
1
1
1
3
1
1
1
3
2
1
1
1
1
2
1
2
2
2
2
3
2
4
8
12
12
8
4
4
8
8
4
4
4
4
4
4
12
4
4
4
12
8
4
4
4
4
8
4
8
8
8
8
12
8
34
26
46
51
21
9
29
21
21
19
29
9
9
29
24
41
9
9
9
41
21
14
29
9
9
21
19
41
21
21
21
61
36
216
809
6
12
30
30
20
8
5
18
20
4
8
8
5
5
8
32
8
5
6
28
20
6
6
20
8
20
18
20
20
24
12
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
34.00
26.00
46.00
51.00
21.00
9.00
29.00
21.00
21.00
19.00
29.00
9.00
9.00
29.00
24.00
41.00
9.00
9.00
9.00
41.00
21.00
14.00
29.00
9.00
9.00
21.00
19.00
41.00
21.00
21.00
21.00
61.00
36.00
440
$
809.00
-
Optimization Analysis
Best Case
Avg Collection time
Daily Time (minutes)
Daily Collection is less than 3 hours
Weekly Volume Required
Volume Available
Required Additional Volume
Time needed to collect if local
Total time Required (local collection)
Approximately 5 hours per day
6 suppliers/day with Drums
2.7194
Gallons/minute
221
600 Gallons/day
3,600
2,200
1,400
86
306.44 Minutes
Given the capacity for Yorktown of 2,200 gallons available, the daily
collection time required is only 221 minutes, or less than 3 hours. But, to
fulfill the 600 gallons a day, an additional 86 minutes is required,
assuming the supply is local. This would be approximately 5 hours/day
for collection.
Assuming that to collect additional waste oil you would have to travel
farther, it is still reasonable to be able to collect 600 gallons/day using
one truck and one person and to supply the biodiesel refinery.
Further Discussion
 If the optimal collection method is using Drums, then
no supplier should be collected from unless they
have a full drum. Some suppliers would produce less
than a full drum in two weeks. Should the collection
process be scheduled based on supplier volume
rather than a weekly basis?
 If a supplier produced 110 gallons a week, then their
collection schedule should be weekly. An
optimization model is needed to schedule collection
based on production such that a drum is collected
only when it is full and in such a way as to not use
more than one shift to do this.