Open AccessDetermination of route for estimating number of truck needed in periodic distribution: A case study
Author(s) -
Dinar Hartanto,
Retnosari Wahyuningtyas
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1072/1/012074
Subject(s) - truck , order (exchange) , transport engineering , distributor , computer science , supply chain , service (business) , business , operations research , operations management , automotive engineering , engineering , marketing , finance , mechanical engineering
Transportation is an important supply chain element. Lowering logistics costs can be effectively carried out by lowering transportation costs. PT. IAP is a distributor company that supplies fast-moving consumer goods products to more than 500 Modern Trade. There was 77% of delivery have been carried out by PT. IAP has achieved the targeted service level. The root cause of this problem is delivery which is triggered by purchase order (PO) from retailers. IAP plans to change the delivery procedure that has been triggered by the PO to periodic delivery based on historical data of each retailer’s demand. Therefore, this research aims to determine the route to estimate the number of trucks needed is periodic delivery. The distribution route will be developed using a saving matrix algorithm for clustering retailers in one route while the order of delivery is obtained by the Nearest Neighbor method. Based on the results of the saving matrix developed in visual basic for application (VBA), it is found that the number of vehicles needed by Colt Diesel Double (CDD) trucks is 23 units and Colt Diesel Engkel (CDE) trucks are 11 units. The reduction in the number of trucks needed is significant, before the study, the company needs 40 trucks CDD and 15 trucks CDE.