The vehicle routing problem is a common central problem in operations research arise in various fields, required to optimally
route a fleet of vehicle to several set of consumers with simultaneous pickup and delivery. Material handling is one of the most
critical problem that should be considered importantly for eliminating waste and reducing the cost. In large scale industries
various transportation systems are considered in order to material requirement of the system. However, it is very complicated
especially dealing with large scale industries with enormous number of material need to be delivered at various locations. This
paper reviews the most efficient methods (nonlinear method and heuristic approach) to solve related issues. The optimal
method enhances the truck utilisation, cargo loading efficiency, inventory holding cost and total transportation cost. It helps to
use operation research techniques to develop a mathematical model to solve a vehicle routing problem considering
simultaneous pick-up and deliveries with time constraints. This optimal method reduces the number of trucks on road as well,
which leads to decrease a traffic problem, so ultimately the burning of fossil fuel can be decreased and carbon dioxide emission
in environment will be decreased.During the design of milk run new routes will be developed and ultimately overall flexibility
can be increased based on the demand of customer or suppliers
In this paper, we mainly concentrate on the milk run vehicle routing problem with simultaneous pick-ups and
deliveries with time frame for determining the effective milk run plan for minimum transportation cost in minimum
time duration. Milkrun method either delivers materials from suppliers to the factory or factory to the customers.
Implementation of milk run material supply system successfully will improve loading rates and reduce number of
trucks utilities and travel distance. Vehicle routing problem can be solved by mainly two method first one is algorithm
and second method with the help of the operation research techniques (nonlinear methods). As a result it can find a
minimum transportation cost and exhaust gases emission can be reduced due to less vehicle utilisation. To address the
problem of having route construction algorithm for milk-run supply system, we need to develop a mathematical model
and heuristic approach that constructs the routes and determines the service period on just-in-time basis to minimize
material handling and total inventory holding cost. As in real world large scale problem, due to continuous demand of
material non-linear model may not go through the high accuracy. It is inevitable to implement the heuristic
approach.Milk run process will decrease transportation cost, reduce inventory and decrease global warming problem in
environment.