Optimizing Delivery Route by Applying Milkrun Method

Abstract

Efficiency of the optimal vehicle route to generate effective delivery is an important issue in the logistics world. The common methods usually practiced in delivery systems are direct shipment, indirect shipment and milk run method. The objective of this research is to analyze the optimization of delivery route by comparing direct shipment method to milk run method to obtain effective delivery. This research involved 8 suppliers and 1 delivery route from the total population of 18 suppliers at PT. Toyota Motor Manfacturing Indonesia and 4 delivery routes in Cikarang area. Data were analyzed by using Vehicle Routing Problem and saving matrix method. The result shows that the optimal delivery route can minimize the distance and vehicle leadtime, therefore, the total cost spent in the milkrun delivery process is cheaper than by applying direct shipment method. It can be concluded that regular parts shipment process by using milk run method is more effective than by using direct shipment method.

Supply Chain System Model of Components for Assembly Lines Based on Kanban and Milk Run Methodologies

“…Enhancement on production lines and stock accuracy due to the synchronization of the deliveries. According to [12], with the right application of Milk Run methodology, the main gains acquired by the companies, retreats on the transportation cost, besides enabling the routes optimization and decreasing deliveries Lead Time, through the multiple collect in only one route.…”

Redesigning a transportation network: the case of a pharmaceutical supply chain

“…Thus, the comparison of these four options against criteria comes down to the study of the impact of applying milk-run method, with respect to these criteria, on the transport network. In this field, several researchers have pointed up the importance of applying Milk-run in achieving an effective delivery system (Chopra and Meindl, 2003;Setiani et al, 2018). Concerning transportation cost and number of trucks, the use of milk-run allows deliveries to multiple locations to be consolidated on a single truck, or to be pick up from many nearly suppliers into single truck to the same location.…”

“…Concerning transportation cost and number of trucks, the use of milk-run allows deliveries to multiple locations to be consolidated on a single truck, or to be pick up from many nearly suppliers into single truck to the same location. So, the vehicle can be make full use of space, greatly improve the vehicle's load factors, and avoid the waste of empty vehicles, resulting in better utilisation of the truck and somewhat lower transportation cost (Chopra and Meindel, 2003;Setiani et al, 2018;Kovacs, 2011). For this reason, we have adopted, in relation to these two criteria this ranking (TN4, TN3, TN2, TN1).…”

“…As a result the products can be delivered faster without having to wait for other customers. However, several works have concluded that milk-run method delivery enables to minimise delivery time by finding the optimal route to get the best route combination by integrating several nearly suppliers into one route within the capacity of trucks' total delivery volume (Setiani et al, 2018). In fact, using milk-run can reduce the delay to deliver the product by reducing the period that the product could stay in the storage centre while the others product be supplied so the order will be delivered, shorten the distribution distance through effective path planning, and avoid the waste of time on the way (You and Jiao, 2014).…”

Management and Production Engineering Review

“…The main research gap with respect to the milk-run design problem is the lack of an explicit, deterministic model representing inventory behavior in the case of cyclically repeated delivery profile schedules with levelled lot sizes. Furthermore, the literature offers no operational model that would simultaneously take into account transport concept assignment, frequency assignment, and the milk-run scheduling decision [13,17,23,24]. Milk-run problems of component/part/commodity distribution can be classified similarly to the exhaustively studied extensions of the VRP, such as the capacitated and consistent VRP with multi-trip multi-traffic pick-up and delivery problem with time windows and synchronization which is a combination of variants of the VRP with multiple trips, VRP with time windows, and capacitated routing and delivery problem [7,13,22,23,25,26].…”