Milk Run Research Articles

Heuristic-Based Hybrid Algorithm for Value Stream Design with Milk-Run Approach

In this study, a heuristic algorithm has been developed for the Milk-Run related to the vehicle routing problem. It aimed to supply in the right place and at the right time in a short time with the internal logistics system approach. Since the proposed problem formulation is NP-hard, we suggested a heuristic-based hybrid genetic algorithm method to solve the problem. Real life problem is solved with a milk run approach inspired by vehicle routing problems. Firstly the model was developed with mixed integer linear programming then the problem was solved with the proposed hybrid genetic algorithm. The aim reduce the total transportation cost in the network and the number of vehicles required by using an efficient vehicle routing strategy. It explains the change in the existing distribution and collection systems of a logistics service company. The response of variables such as time, weight, volume, and pallet was measured under various scenarios with cost and time savings by applying Milk-Run optimization. The deterministic model and the proposed heuristic algorithm compared the previews and outputs of the paths. Accordingly, 30% and 50% discounts were made on restrictions for six different scenarios.

Reverse milk run – the logistics retrenchment strategy

Learning outcomes After completion of the case study, students will be able to understand the concept of clustering and identify clusters for improving capacity utilization, analyse transport routes to optimize logistics resources, analyse the impact of a full truckload on resource optimization, evaluate unused capacity and ascertain the impact of reverse milk run to reduce the same and apply clustering and reverse milk run to optimize the logistics resources. Case overview/synopsis The case study is about a freight forwarding company that offered end-to-end logistics solutions for the exporters based in India. Within a short time span, the company became one of the sought-after service providers for its clients. However, when the company planned to expand its business by expanding its client base, the efficiencies reduced and hurt the profitability of the company. It was all excellent with the limited number of clients, but as the number of distantly located clients surged, the operating costs increased. Trucks were running with partial loads, thus reducing efficiency. The rate of increase in cost surpassed the rate of revenue every time. The cost per mile of transportation was on the rise. The surging fuel prices were adding to the heat. In spite of being one of the first choices for clients, the company could not generate good profit margins. If they chose to increase prices, the company would have lost customers to the cheaper unorganized players in the market. It was time to choose between growth and survival. The company could not sustain itself without devising a mechanism to reduce costs. The company would not have sustained itself without devising a mechanism to reduce costs. To sustain in the business, the company had to device a mechanism to reduce costs. Whether to continue operating the conventional way or to transform? Was there a logistics strategy that would have improved transportation efficiency and reduced the costs for the company? Complexity academic level The case study is suitable for teaching post-graduate management courses in operations and logistics, supply chain management and supply chain analytics, as well as entrepreneurship-related courses. Supplementary material Teaching notes are available for educators only. Subject code CCS 9: Operations and logistics.

Optimization of the risk-based small-scale LNG supply chain in the Indonesian archipelago

The electricity supply in Indonesia is considered inefficient, as indicated by the increase in the Cost of Generation Provision (CGP) in the 2016–2021 period. Indications of high supply chain risks are not commensurate with the low demand for LNG. Nevertheless, every power plant on small islands must be served by minimizing costs. This study aims to develop a risk-based small-scale supply chain model to distribute LNG in archipelagic areas by minimizing infrastructure costs, including investment and operations. This paper formulates a risk-based small-scale LNG (SS-LNG) model with milk runs, which are rarely applied in LNG supply chains, thus impacting cost efficiency and the sustainability of LNG supply in Indonesia. The simulation was carried out using the vehicle routing problem with milk run (VRPMR) method. The optimization results show that the 2-vessel scheme is an optimal and efficient risk-based SS-LNG supply chain model. However, it appears that changing the scheme from 1 to 2 vessels generally increases the infrastructure tariff by 3%, or USD 0.11 per MMBTU. This risk-based supply chain model is able to ensure a fuel cost efficiency of 27% for power plants.

Research on Vehicle Routing Problem in Auto Parts Inbound Logistics Based on Milk Run Mode

The application of milk run in domestic automobile parts supply was studied. A mathematical model for routing a milk run system was formulated by minimizing the transportation and inventory cost under the restriction of tiered storage pricing scheme and multiple vehicle types. In solving the model, a modified genetic algorithm was developed, which is suitable for realistic sized problems. The utility of the approach was demonstrated through a computational experiment.

Internal Logistics Process Improvement using PDCA: A Case Study in the Automotive Sector

Abstract Background: The Plan-do-check-act (PDCA) cycle methodology for a continuous improvement project implementation aims for the internal logistics upgrade, which is especially important in the industrial context of a component manufacturing company for the automotive sector. Objectives: The goal is to quantify the gains from waste reduction based on the usage of the PDCA cycle as a tool in the implementation and optimisation of a milk run in an assembly line of a company in the automotive sector by determining the optimal cycle time of supply and the standardisation of the logistic supply process and the materials’ flow. Methods/Approach: The research was conducted through observation and data collection in loco, involving two main phases: planning and implementation. According to the phases of the PDCA cycle, the process was analysed, and tools such as the SIPOC matrix, process stratification, 5S, and visual management were implemented. Results: Using Lean tools, it was possible to reduce waste by establishing concise flows and defining a supply pattern, which resulted in a reduction of movements. The transportation waste was reduced by fixing the position of more than half of the materials in the logistic trailers. The developed Excel simulator provided the logistic train’s optimal cycle time. Conclusions: The assembly line supplied by milk-run was fundamental to highlight a range of improvements in the process of internal supply, such as better integration of stock management systems, greater application of quality, or the adoption of better communication systems between the different areas and employees.

Milk Run Testing through Tecnomatix Plant Simulation Software

Milk Run Testing through Tecnomatix Plant Simulation Software

Review Essay: “Beyond Metaphor”: The Uncanny Precariousness of Being

Review Essay: “Beyond Metaphor”: The Uncanny Precariousness of Being

The Application of Lean Methods in Corporate Sustainability—A Systematic Literature Review

This paper reviews the application of lean methods for corporate sustainability and highlights demands for future research. With the help of a systematic literature review, papers at the interface of lean and sustainability were identified and matched to a standardized list of lean methods to assess their frequency in the context of sustainability. In a further step, papers containing actual case studies were analyzed in more detail regarding specific application settings, sustainability dimensions, measurability of sustainability impact, and other criteria. The quantitative analysis of 363 publications shows frequent use of lean methods such as just in time and value stream mapping in the context of sustainability, and a surprisingly low use of other approaches such as karakuri, milk run, or chaku chaku. The in-depth analysis of 81 case studies reveals the primacy of intra-company and ecological assessments in the lean context, while social and inter-company aspects remain rather underexposed. This study complements existing research on lean and sustainability by systematically analyzing specific lean methods in the context of sustainability and by further exploring the sustainability characteristics of such lean applications.

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

Seeking to optimize the raw material supply for the assembly lines in many industries, the following case study, starting with a direct observation of a motorcycle factory and an electronics assembly factory, based on a rich theoretical analysis of the Lean wastes, describe the factories present processes and focus on developing a fast, feasible and low cost solution, gathering concepts of Kanban and Milk Run methodologies, resulting in a proposal of a system of real time management of the production status, allowing a better organization for the logistics teams of the named companies.

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

Seeking to optimize the raw material supply for the assembly lines in many industries, the following case study, starting with a direct observation of a motorcycle factory and an electronics assembly factory, based on a rich theoretical analysis of the Lean wastes, describe the factories present processes and focus on developing a fast, feasible and low cost solution, gathering concepts of Kanban and Milk Run methodologies, resulting in a proposal of a system of real time management of the production status, allowing a better organization for the logistics teams of the named companies.

Milk-Run Collection Monitoring System Using the Internet of Things Based on Swarm Intelligence

In our country Morocco, several dairy factories are placed in rural regions with a bad road network, which means that milk collection has a significant impact on profit, affecting milk transport costs. Actually, the milk run logistics process has been transformed from a traditional farm to the new cheese factory, so it’s needed efficient methods and models to improve the process of production and collection of milk from those units. For that, we will apply new technologies such as the internet of things (IoT) and big data to collect and analyze this information to optimize the milk delivery process. The main goal of this work is to design a new smart decision method using the internet of things and big data to optimize the milk run logistics, reduce the cost of transportation and improve collection density. This method will be based on the swarm artificial intelligence concept to find and calculate the shortest path between units to optimize the collection of milk.

Evaluation of the distribution model and mode of transportation of PT X

Logistics contribute to cost efficiency accompanied by increased productivity and profits along with improvements in service to consumers or customers. Transportation issues are related to how companies reduce logistics costs by building efficient transportation networks. So far, the company PT.X has been sending products to all consumers using the Direct Shipment with Milk Runs distribution model with the truck transportation mode. The highest transportation costs at PT. X reached 19% and the average percentage of costs was 14% of the company’s net income (total Revenue). It appears that the cost of distribution of PT.X products has been Out of Control due to reaching more than 10% of the company’s net income. A percentage of this amount is included in the Major Opportunity for Savings or an opportunity for improvement. In this study a solution is proposed in the form of the best type of delivery and the mode of transportation that is suitable for the type of delivery. The right type of shipping at the company is Direct Shipment Milk Runs which has two alternative transportation. From the latest delivery route arrangement, transportation costs drop to 8% of total revenue when using truck and 4% of total revenue when using motorized rickshaw.

Optimalisation of Internal Logistics Transport Time Through Warehouse Management: Case Study

Warehouse management and internal logistics planning and control are growing in importance. Nowadays, many methods have been developed in the areas of warehouse management and internal logistics planning and control. Internal logistics is essential in creating value and maximising profits by streamlining internal logistics tasks. As a key indicator of logistic processes, efficiently is set transport time. The article deals with the possibilities of improving logistics and warehousing using available methods with the smallest possible input capital and decreasing transport time. In the first part, the warehouse is reorganised, and lean methods such as Kanban and Milk run are set. The presented design is applied to the newly created hall. The result is improved processes and shorter transport times for material at the workplace and, ultimately, faster delivery of the finished product to the market and customer satisfaction. Scientific and more important for this study professional benefits consist in the application of mentioned methods. Benefits as a save the costs for the process and more straightforward adjust to external influences.

Research on Countermeasures for the Development of Rural E-Commerce Logistics

Under the current environment, rural e-commerce logistics have become the focus of attention from all walks of life, and various e-commerce enterprises and logistics companies have entered the rural market under the county to achieve the purpose of expanding their market share. Based on the characteristics, current situation, and problems of developing rural e-commerce logistics in Huade County of Ulanqab City, Inner Mongolia Autonomous Region. The article using Schematic diagram of Milk Run optimisation model and E-Commerce Logistics Distribution Model, puting forward several countermeasures suitable for the development of rural e-commerce logistics in Huade County.

THE UPGRADED ROLE OF THE VALUE STREAM DESIGN FOR REDESIGNING THE FACTORY LAYOUT

The case study shows the re-optimization of an initial new factory layout design with Value Stream Design (VSD). The VSD is a quantitative method and its’ final goal is to make a waste free optimized material flow. The primary goal of arrangement is to reduce transportation distances and frequencies, optimize human load. Initially the whole factory shop floor layout design was already made in push concept. The plans were made by production management, logistics, engineering department at the headquarter of the multinational automotive company with based on VDI2870 holistic concept linking strategy on tactics and operation. On the layout (v1.) the hundreds of machines were placed and arranged by CAD (Computer Design) engineers to fit the space. The factory building has 15,000 m2 with empty shop floor waiting for the final decisions for equipment. The factory production area was shared into six main production areas (P1-P6), which correlates with their product complexity of the product families. Each production area output can be finished product (FP) or semi-finished product (SFP) for the next production areas. To validate the whole factory layout it was necessary to involve lean experts that identified disadvantages and constraints. Without lean implementation the company’s transportation waste would be 49% more per year. The Value Stream Design importance nowadays is upgrading to a higher level, when the whole global business is changed, the labor force fluctuates, and the cost and delivery time reduction plays a vital role in the company’s profit and future. The research shows that if the decision taking is based on real data and facts the controlling and management can do its best in time. Using VSD and re-evaluating the transportation routes, frequency and costs is the first step to define a smooth, low cost, material flow (v2.). This development ensured the company to drive from push to pull production through mixed production system. Originally, the production flow was clockwise orientation. It was changed step by step to mixed production by eliminating work in process storages, implementing FIFO lanes, Milk Run, and Kanban. The total annual transportation distances were reduced from 4,905,000 m between the rump-up and serial production period. The warehouse storage size was reduced to 50% and implementation cost from €75,000 to €32,500. By eliminating work in process storages along production lines it was possible to open a new two way transportation road that also will serve the AGV’s operations in industry 4.0 projects. Due to decreased lead time the logistic labor productivity increased by 45%. Besides taking measurements for the VSD it was used Value Stream Mapping as a lean tool and an own designed VSD evaluation and a simulation software. The VSD team’s cooperative actions reduced the evaluation and validation time with 65% then it was initially planned. The implementations were evaluated from the rump-up phase to the first serial productions and the results were confirmed by controlling and management

Bi-Level Model on Freight Distribution Network Integration in Archipelagic Region with Milk Run Time Windows and Uncertainty

Bi-Level Model on Freight Distribution Network Integration in Archipelagic Region with Milk Run Time Windows and Uncertainty

Modelling material flow using the Milk run and Kanban systems in the automotive industry

AbstractMaterial flow management refers to the analysis and specific optimization of the inventory‐production system. Material flow can be characterized as the organized flow of material in a production process with the required sequence determined by a technological procedure. The Milk run system assures the transportation of materials at the right time and in an optimal manner. It should be combined with the Kanban system to highlight when something is required in the production process. This paper presents biological swarm intelligence, in general, and a particular model, particle swarm optimization (PSO), for modelling material flow using a Milk run system supported by a Kanban system in the automotive industry. The aim of this study is to create a new model for the optimal number of trailers for one train and optimal number of containers in a tugger train system when the route time period has been defined. A new modified PSO approach for integrating inventory‐production in a unique optimization model is used. The major modification to the original PSO is using the capacity of a container instead of a velocity component. Each new Kanban trigger is checked, and the total timing for the Milk run delivery solution is calculated for the necessary raw material capacity for each shop floor.

A Novel Approach for Optimizing the Supply Chain: A Heuristic-Based Hybrid Algorithm

Managing the distribution of goods is a vital operation for many companies. A successful distribution system requires an effective distribution strategy selection and optimum route planning at the right time and minimum cost. Furthermore, customer’s demand and location can vary from order to order. In this situation, a mixed delivery system is a good solution for it and allows the use of different strategies together to decrease delivery costs. Although the “distribution strategy selection” is a critical issue for companies, there are only a few studies that focus on the mixed delivery network problem. There is a need to propose an efficient solution for the mixed delivery problem to guide researchers and practitioners. This paper develops a new “modified” savings-based genetic algorithm which is named “distribution strategy selection and vehicle routing hybrid algorithm (DSSVRHA).” Our new algorithm aims to contribute to the literature a new hybrid solution to solve a mixed delivery network problem that includes three delivery modes: “direct shipment,” “milk run,” and “cross-docking” efficiently. It decides the appropriate distribution strategy and also optimal routes using a heterogeneous fleet of vehicles at minimum cost. The results of the hybrid algorithm are compared with the results of the optimization model. And the performance of the hybrid algorithm is validated with statistical analysis. The computational results reveal that our developed algorithm provides a good solution for reducing the supply chain distribution costs and computational time.

Feasibility of drone integration as last mile delivery

Supplementary materials Padmanabhan A. 2017 “Civilian drones and India’s regulatory response”. Moushami P. Joshi and Jennifer E. Trock (2016) “India Moving Forward with Unmanned Aircraft Systems Regulations for Civil and Commercial Use” www.lexology.com/library/detail.aspx?g=6d596577-7a4a-4ecc-916e-83c4d37cc90c. www.indrones.com/2017/04/27/drone-industry-india/.Zeimpekis, Vasileios; Ichoua, Soumia; and Minis, Ioannis (2013), Humanitarian and Relief Logistics. Research Issues, Case Studies and Future Trends;Operations Research/Computer Sciences Interfaces Series. Springer Publications, www.springer.com/in/book/9781461470069. Learning outcomes The learning outcomes are to illustrate the concept and features of cost-effective and responsive supply chain, to explain the concept of hub and spoke and milk run methods used for delivery, to identify financial, operational and technological risks, to elaborate the importance of social dimension (behavioral dimension) in any technological change in an organization and to understand the concept of management of change in organizations. Case overview/synopsis The case deals with a typical challenge of periodical delivery systems, in this case specifically of The Topical, an Indian periodical. The service manager of the company, Sara Jindal, recognized a problem with customer retention. She explored the causes and found that The Topical, a 20-year-old company, was losing its popularity due to the untimely delivery of the magazines. To solve the problem Jindal, tried to gain an understanding of the operational processes and realized that there was no issue in the warehouse regarding inventory control, management or order pickup. However, she found that the magazines were parceled through book post and that there was no tracking policy in the company for the deliveries. Therefore, it was not possible to know whether the magazines got delivered on time. The matter was taken seriously and as a solution, the possibility of integrating drones into the delivery system came up. Complexity academic level Undergraduate and Postgraduate students. Subject code CSS 9: Operations and Logistics

Integrating Sustainability into the Optimization of Fuel Logistics Networks

Sustainable operation of logistics systems is a challenge for companies that import refined petroleum products since a complex network is required to deliver this flammable product to the final customers on a regular basis. The present study aims to provide a systematic approach for optimizing Fuel Logistics Network (FLN) accounting for not only transportation cost but also the processrelated risks and the relevant externalities. A Multi-Objective (M-O) Location-Inventory Problem (LIP) is first developed for the risk-aware optimization of logistics networks. The base model is then extended to a Location-Inventory-Routing Problem (LIRP) by integrating routing decision variables to account for the transportation-related risk and the externalities. An M-O evolutionary algorithm is finally adapted to solve the developed problems. The main contribution of the present study is, therefore, to highlight the non-financial operational factors, including safety, emissions and congestion, which have a direct impact on the sustainability of the fuel sector. The proposed mathematical models are tested in the case of a major Liquefied Petroleum Gas (LPG) company in Korea. The final results indicate that decentralization can noticeably improve sustainability in the logistics network of the case study in terms of the safety level around the network nodes as compared to the current norms. It is also suggested that frequent and small-volume supply of fuel may be a feasible alternative to the full-tank replenishment of auto-gas stations. This can be achieved through consolidation of small-volume shipments into large shipments within a milk run transportation routine, or the use of low capacity trucks. Such a process design is likely to further improve the safety factor around the auto-gas stations.