A robust optimization approach for the Milk Run problem (An auto industry supply chain case study)

The idea of milk run has been used in the context of logistic and supply chain problems in order to manage the transportation of materials. In this paper we develop a mathematical formulation for the problem of robust resource milk run, as a mixed integer approach, to manage supply chain problems. Since the resulted problem formulation is NP-hard we use robust optimization approach and compare the results with the optimal solutions of the proposed milk run method. Finally we using some actual data and compare the results with the current strategy.