An integrated inbound logistics mode with intelligent scheduling of milk-run collection, drop and pull delivery and LNG vehicles

Abstract

Although it provides a feasible inbound logistics solution for steady production and low inventory management, the Milk-run mode inevitably leads to a high transportation costs due to the features of small-batch and high-frequency delivery. In order to break through the defections of the existing inbound logistics mode, an integrated inbound logistics (IIL) mode with low-carbon and high efficiency is established. An intelligent scheduling method combines Milk-run collection with drop and pull delivery together. Moreover, the LNG vehicles are simultaneously used in the whole process. With AJ company’s auto-parts inbound logistics as a case, the IIL mode is formulated with a mixed integer mathematical model. The genetic algorithm coded with Matlab is used to find the optimal solution. The results show that when compared with the original Milk-run mode, the IIL mode brings massive reductions in driving mileage, wait time and waste gas emission. It can make significant benefits in both economic and social sense. Therefore, it is entirely reasonable for management of industries to believe that the IIL mode will be a feasible and promising alternative for inbound logistics.