Companies which sell products usually receive orders from clients daily, weekly, monthly or from time to time. Different orders could have different order dates and require different product types and quantities. Different customers also have different delivery dates requirements. Therefore, how to generate a good plan of customer coverage and routing for each truck to meet all customers’ order requirements is a typical problem faced by many companies.
A milk run planning optimization solution was provided with a mixed integer programming models to help the companies to plan for customer coverage and logistics routing so as to meet all customer demand while minimizing total transportation cost.
Value from Optimization
Planners can use the milk run planning solution to do batch delivery or ad-hoc delivery to meet all customers’ orders considering customers’ work time window, which improved customer satisfaction and reduced total transportation cost.