Question

milk run model can be implemented ______
When suppliers are located far away from parent company.
None of the above
There is no such requirement
When suppliers are located in close vicinity of the parent company.​

Answer 1

Answer:

• I applauded the facts given my Marco Peruna but practically it needs discipline to execute the efficient milk run and depending the types of business they are doing. Japan started earlier with milk run exercise in their factories, mainly at SMEs levels but not at large corporation. However, that if the situations sustain the plan well for examples the vendors are near the factories (5 km radius) and good infrastructures with effective transportation delivery as the milk run needs to be very frequent in delivering the supply. The more frequent of its delivery to the plan the better. But the cost incurred is high due to the transportation costs. I remember when I was still working in Japanese MNC in Malaysia, we tried to run the milk run as what being run in Japan but failed badly. This due to the large amount of supply that needs to be delivered, vendors capabilities of sticking to the milk run plan, locations were far between the factory and vendors factories, and transport charges. Other factors due to discipline of workers in adhering to the plan as they are not ready for that.