The milk run system suggests picking truck load inventory from the distribution centre and
delivering it to various retailers according to their demand. For example: The truck load capacity
of 120 tonnes and there are orders from four small retailers of various quantities. The truck will
go from distribution centre to the first retailer, will deliver its order, then will go to the second
retailer and in the same way will go to the other retailers also until it is completely unloaded.
Once unloaded, the truck will return to the distribution centre. The process continues with many
numbers of trucks and many small retail orders. The strategy is appropriate with the small
retailers because delivering them individually will not utilize the truck loading capacity and will
incur extra costs on the company, while adopting it will reduce the supply chain cost and the
delivery time.