1Assistant Professor, Department of Industrial Engineering and Management, R V College of Engineering, Bengaluru-560 059, Karnataka, India
2Principal and Professor, Department of Industrial Engineering and Management, R V College of Engineering, Bengaluru-560 059, Karnataka, India
Logistics is a fundamental component in any automotive industry. The study involves the delivery system that consists of milk run pick up with the single hub cross-docking system. It was identified that there is no direct shipment of goods from supplier to the customer; a company is experiencing lower service quality of the delivery system. After adapting third-party logistics partner also there is a lower delivery rate of products. This study develops a model for the mixed truck delivery system that allows both single hub cross-docking with milk run and direct shipment. A mathematical model was developed to determine the total transportation cost and shows the 12% cost saving achieved by providing flexibility in transportation by efficiently using services provided by third party logistics.
Mixed Truck System, Milk Run Pick Up
