Research On Application Of Milk Run In Auto Parts Inbound Logistics

China's automobile production and sales ranks first in the world for nine consecutive years.The continuous increase in automobile demand has brought tremendous development opportunities to the automobile industry,and it has also intensified competition among major automobile companies.In order to maintain and expand market share and increase sales,auto companies have to improve the product's appearance and quality,but also to retain the advantage of product prices.Therefore,more and more companies are turning their attention to the third-region of profit source."Logistics costs." According to reports,the logistics cost of the automobile manufacturing industry in Europe and the United States accounts for about 8% of sales,Japan is 5%,domestic automobile manufacturers basically exceed 15%,and China's total domestic automobile logistics volume in 2015 is RMB 662.8 billion.The average logistics cost of a car is about 3,400 yuan,of which 70% is the inbound logistics of auto parts.Therefore,the cost reduction of the inbound logistics of auto parts has become one of the key factors for decreasing the overall logistics cost and improving competitiveness.Under the conditions of flexible production,and just-in-time supply,the auto parts logistics has many characteristics,such as wide variety,large supplier area and high requirements for factory cooperation.This paper is aimed at small batch and high frequency auto parts.It is proposed to adopt professional third-party logistics,and use the Milk Run mode as the inbound logistics mode to reduce the total logistics cost and optimize the overall supply chain.Firstly,the theoretical background and specific implementation conditions,operation process and planning design of the Milk Run are introduced,and secondly the core vehicle routing problem(VRP)model is established in Milk Run pick-up plan.Under the constraints of the window picking-time and the maximum loading volume of the vehicle,the modified CW saving algorithm is selected to solve the model,and the 2-SWAP method is applied to verify whether the initial solution is the best.Finally,through the case analysis of BZ company,it is further tested that Milk Run mode in the inbound logistics accelerates the turnover of empty appliances,decreases the number of picking up vehicles,reduces the total driving distance and the delivery time.This paper hopes that the research can provide good advice and support for the operation of auto parts logistics,optimize the overall supply chain of auto parts and improve the competitiveness of auto manufacturers.