Research On Milk-Run Transportation System Application In Company S

Nowadays,with the rapid development of manufacturing industry,more and more enterprise will pay high attention to production output and sales revenue,while another inevitable matter which makes company to think over.That means,under the circumstance of mass production and customer order demand instability,affiliated logistic cost becomes increasingly prominent.The top priority of total logistic cost is material transportation cost which every manufacturing enterprise receive the raw material for their production base from supplier.By utilizing this traditional model(push mode),that is to say,each supplier transports the material directly to manufacturing enterprise by themselves.However,we observe that this kind of supply model cannot better accommodate to the dynamic collaboration between supply and demand in nowadays.Furthermore,this traditional supply model(push mode)with pretty higher logistic cost already brings negative effects on the long-term development.In the meanwhile,professionals are fully aware of the importance of JIT logistics.Especially for those material supplies with low volume and high frequency,traditional supply model(push mode)is replaced by Milk-run model(pull mode)significantly.Base on essence of JIT and lean operation philosophy,Milk-run transportation system can offer an integrated logistics resource by an effective and efficient manner.Through the seamless collaboration between manufacturing enterprise and supplier to reduce total logistic cost and optimize the whole supply chain cost in the end.First of all,the author elaborates the concept,principle,precondition and advantage/disadvantage of Milk-run model;also complete a further research on Milk-run application scenario in domestic and overseas.By doing this,we can work out optimum transportation routing model with the most cost-effective result.Next,the author takes company S as an example,offer a research on the company existing material transportation model and its operation status.Dig out and locate a serial of issues caused by existing model,to bring out the Milk-run model as a brand new approach for company S.Furthermore,make an elaborated analysis on those elements which will take impact on success of Milk-run model,i.e.the industry,product nature,manufacture scheduling,IT infrastructure between enterprise and its suppliers,road conditions,etc.Base on above rounded analysis,the author study on the entire process of Milk-run model for company S,follow by calculating the transportation routing and prototyping.Eventually work out Milk-run transportation routing and implement it for company S.There are two new adjustment need to be accented in order to comply with the execution of Milk-run system in company S.Last,the author completes logistic cost analysis to prove the feasibility and validity of new material transportation model(Milk-run)which apply in company S.During the cost analysis,SA(simulated annealing)method is used innovatively to locate the milk-run route.With the implementation of Milk-run material transportation system,we can create better collaboration between enterprise and its supplier,enhance the upstream and downstream supply chain transparency and execution which include original equipment manufacturer,material supplier,logistics service provider and other related parties.Thereby,to accomplish seamless connection within Production-Supply-Sales,reduce the logistic operation cost and improve productivity of each party.