Milk Run

Posted in Operations and Supply Chain Terms, Total Reads: 10203
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Definition: Milk Run

Milk run term given to the delivery method. The name has been derived from the method used by the trucks to deliver the daily requirements of milk to the dairy co-operatives.

A milk run ensures that that minimum distance is travelled and the maximum demand is carried into the truck so as to meet both the demand requirement and effective transportation with least cost.

This is applied where the load is scattered in many different places and in smaller units.

In such a case carrying from each centre individually would be very expensive, hence a scheme is designed as per the requirements and accordingly all different units are procured and transported.

 

 

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