In this paper, we mainly concentrate on the milk run vehicle routing problem with simultaneous pick-ups and
deliverieswith 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.