This paper describes an internal logistic system that uses Milk Runs (MR) also called Logistic Trains (LT) to transport parts in an electronic industry (production of car radios and GPS navigators). The MR design and process analysis are performed using computer simulation as part of a developed tool (IDS) that integrates simulation, database and CAD system together. By using simulation models for research and experimentation, we improve our knowledge about the system, prior to implementation or even changing the real system. The project outcomes, based on the simulation optimization, lead to the reduction of logistic costs and improvement in the availability of material in production lines. These in turn, reduce work in process material (by reducing stock levels and buffers in the production lines) and setting the minimum number of MR and kanban units
