A new mathematical modeling and a genetic algorithm search for milk run problem (an auto industry supply chain case study)
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The idea of Milk Run has been used in the context of logistic and supply chain problems in order to manage the transportation of materials. In this paper, we propose a new Milk Run method, as a mixed integer approach, to manage supply chain problems. Since the resulted problem formulation is NP-Hard, we use some meta-heuristic and compare the results with the optimal solutions of the proposed Milk Run method. The mathematical modeling of this paper is purposely customized for a special case of an auto industry. We implement the mathematical formulation and the meta-heuristic using some actual data and compare the results with the current strategy. The preliminary results indicate that the proposed method could provide a practical tool to significantly reduce the cost of logistic.
KeywordsLogistic Milk run system Vehicle Routing Problem (VRP)
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