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 importantlyfor 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 runnew routes will be developed and ultimately overall flexibility
can be increased based on the demand of customer or suppliers.
Keywords:- Vehicle routing, Material handling, Kanban, Milk-run