A SCM experiment of engine assembly by WITNESS simulating

Due to the complexity in operations and the big existing number of auto parts and components, it is more than necessary to be successful in the supply chain management (SCM), mainly regarding to logistics cost reduction and integration of all links that constitutes the chain. For this purpose, an applied research in the engine company was carried out, and both the Milk-run system and the direct line haul system are used in the case of the engine assembly. By analyzing and comparing the features of the both, the paper summarizes the applied results of the latest Milk-run mode based on WITNESS simulating. The result shows the method utilized reducing costs with transport, warehousing and stocks maintenance activities, maximizing the vehicle utilization and minimizing the time expended, besides it reduces the stocks in all chain links and optimizing the establishment lasting relationships of trust between the all chain components.