A Study On Practice And Application Of Milk-Run In China

This paper analyzes the application of Milk-Run in just-in-time (JIT) supplymode. It firstly introduces the conceptions of Lean and JIT theory, whose core is toget rid of all kinds of wastes including inventories. JIT supply is pursued by manycompanies in their supply or procurement logistics operation on the base of Lean andJIT thinking. At the same time, there is always a conflict between inventory cost andtransportation cost while implementing JIT supply, causing the whole supply chain'scost not as depressed as expected. In this paper, Milk-Run system is introduced andproposed as a good remedy to the inner problems of JIT supply. With some failures ofMilk-Run practice in Chinese enterprises, it's necessary to examine the problems andcauses in the process by integrating the status of logistics and supply chainmanagement in China and overseas experiences. By doing that, the paper discussesMilk-Run's application areas and conditions, from macro-level ones like industryoptions and the Third Party Logistics (TPL) employment, to demand planning, routedesigning, and quality inspection, which are on micro-level, offering references andsuggestions to manufacturers, suppliers and TPLs involved for implementation ofMilk-Run system in China...