Milk runs model with overtime: application to cluster supply chain

Abstract

Paper identifies obstacles limiting functioning and development of small and medium construction enterprises. It also includes a description of cluster supply chain (CSC) idea as a suggested solution to some of the problems resulting from the small scale of company activities. One of more important issues of every distribution centre, i.e. portions of deliveries smaller than truck capacity for particular consumers, is also discussed. This problem was formulated for the first time in dairy industry, therefore, it was called milk runs. Moreover, the authors of this paper presented the outcome analysis of survey carried out among construction engineers and managers. This study aimed at determining organizational principles for logistic centre working with CSC framework. The mathematical model depicting milk runs deliveries with overtime consideration, done for many construction sites within a distribution centre is presented hereunder. This model may be potentially used to optimize distribution centres working within cluster supply chain framework.

Keywords

• cluster supply chain
• mathematical programming
• multi-objective optimization
• small and medium enterprises