Chapter 14 – Logistical Network Analysis
TRANSPORTATION NETWORK OPTIONS
Milk Run:-
a) A milk run is a route on which a truck is either delivers product from a single supplier to multiple buyer or goes from a multiple supplier to a multiple buyer location. “(SUNIL AND CHOPRA)”
1) DIRECT SHIPMENT
In this the manufacturing supplies the goods directly from the manufacturing plant to the retailer without using a distribution centre or a warehouse.
2) Direct Shipment with Milk Run:-
a) In a milk run, a truck collects goods from various suppliers and delivers them to single retailers or collects goods from one plant and delivers them to various plants.
b) It leads to reduce inventory level, reduction in transportation cost.
3) Direct Shipment via distribution Centers:-
a) In this system, all the suppliers supplies the goods to the distribution center.
b) The distribution center then arranges for the shipment to the individual retailers as per their orders.
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