Optimization of Hub-Based Milkrun Supply

Abstract

Background: Milkrun-based material supply plays an important role in the automotive industry, as it is a material supply concept where high efficiency can be achieved. When implementing milkrun-based material supply, the milkrun supply of the production plant often has to be integrated with an existing warehouse material handling system, which frequently leads to a less efficient solution. Methods: In this paper, the author investigates the impact of a hub-based milkrun supply, where the collection processes in the component’s warehouse and the distribution processes in the assembly plant are connected to a hub, which is responsible for the sequencing of component demands. After a systematic literature review, the paper introduces a novel mathematical model, which makes it possible to describe the conventional milkrun-based solutions, the hub-based milkrun solutions, and to compare them in terms of the length of transportation routes, transportation time, total service time, and virtual emission points of view. Results: The scenario analysis demonstrates that the hub-based solution can lead to an efficiency improvement of about 13% in total service time, 23% savings in transportation time, and 45% savings in transportation time in the component’s warehouse. Conclusions: The article’s findings suggest that implementing a hub-based milkrun system in automotive material supply can significantly enhance efficiency. The described approach could lead to more streamlined operations in production plants by optimizing the integration of milkrun systems.