Abstract: In some whole vehicle manufacturers, there are problems in part supply, such as late inbound delivery, unevenly busy or idle in port unloading, non-transparent logistics cost, low transportation efficiency and service level, uncontrollable management, and so on. To solve this problem, by using ‘5W3H’ and questionnaire survey, a study is conducted for engine and transmission production of A-type car in a whole vehicle manufacturer. Then, with Milk-run system, solution is presented for the problem. Thus, based on the concept of equalization and justintime (JIT), logistics and information flows are established. Further, based on the idea of integrating three flows into one, information flow, cash flow, and operation process are also established. Result shows that, for typical large parts, the inventory in distribution center has been reduced from 10 days to three days, and transport vehicle quantity has been reduced from 16 to 8, and it saves transportation cost 10 million Yuans per year. This is a significant improvement.

Key words: equalization, just-in-time, logistics planning, Milk-run system