Characterization of the milk run scheduled parts collection system

Abstract

The article analyses the new approach of material management in Brazilian automobile industry to reduce holding and inventory cost. It describes the conventional procurement system (direct shipping) and gives account of the Milk Run and its features. It also compares Milk Run to Just-in-Time and describe how to use both systems at the same time depending on the distance (automobile manufacturing site/supplier) and the material volume to be obtained picked up (or collected) of each supplier within supply chain.

Suppliers; automobile industry; logistic carrier; supply chain; holding cost