Research On Inbound Logistics Mode Of A Private Automotive Company Based On Milkrun

In the past half century, the automotive manufacturing industry developed rapidly with the continuous improvement of people's living and consumption level. Automotive Logistics is an important source for the automotive industry to obtain the value advantage. A good logistics mode can help enterprises to save more hidden logistics costs, reduce production costs and improve efficiency while not affect the normal production. There are many inadequacies exist in the inbound logistics of the private auto companies in China, such as the lower level of professional services and delivery efficiency of third-party logistics company; the large arbitrary of supply delivery, poor quality and low enthusiasm of supporting venders. The increasing prominent problems restrict the rapid development of private auto companies, so it has urgent needs to seek a new inbound logistics mode to solve these problems in the current inbound logistics.Inbound logistics of the auto companies have a collection of thousands of parts, a huge number of suppliers and third-party logistics companies, which formed a whole complex system of materials, information and capital flow, so it is extremely important to choose the appropriate logistics mode suited for the private auto company according to their own characteristics. According to the characteristics of a private auto companies and the practical problems in current inbound logistics mode, the Milkrun mode which takes lean production as its core idea is introduced to replace the existing independent delivery mode in this paper. The decision making trial and evaluation laboratory (DEMATEL) method is used to analyze the various factors that affect the inbound logistics, and the key factors need to be improved in orders are found as follows:the transport path planning, inventory, product packaging, logistics personnel quality and information communication. Build complex mathematical programming model to solve the Milkrun transportation route, and use the lingo software to obtain the optimum pickup line. Develop inventory policy for the new mode, and then use the Emplant simulation software to compare the inventory reduction between two logistics modes. Establish the mathematical model to analyze the inventory cost of two kinds of logistics models. Finally,8parts from8suppliers are selected for simulation in this paper, and we find that the new model can shorten55.5%of the parts' transport distance, reduce91.8%in inventory and decrease the stock volume by86.9%. Moreover, the pressure of the auto company's warehouse storage area is relieved while more than7000million parts inventory funds are saved by using Milkrun mode. The simulation results show that the Milkrun mode can improve the logistics efficiency and distribution quality, reduce inventory and save logistics costs.This study provides a good reference for the private auto companies to implement Milkrun logistics mode and has a very important practical significance.