Transport concept selection considering supplier milk runs - An integrated model and a case study from the automotive industry

Efficient inbound transport networks in the European automotive industry rely on a set of different transport concepts: point-to-point services, area forwarding services and regular milk runs. For the tactical planning and the operational controlling of a mixed inbound network, a manufacturer needs decision support. We provide an integrated mathematical model and a simple, standard solver based solution approach for the transport concept selection considering milk runs. We show the potential of the approach based on a real world case study from the automotive industry. Furthermore, we introduce quick test and performance indicators and we discuss managerial insights.