| Summary: | Distribution system is one of the most important activities within company for
reaching its customers. The location differences of the customers can be solved by
applying efficient distribution system. Distribution system which is not doing
properly will also cause raising overall company expenses. Thus, having
optimized distribution system is a necessity for every company. A mathematical
model of Vehicle Routing Problem is built in this research. The system that has
been observed in this research is PT. Kimia Farma Trading and Distribution
Yogyakarta. The model characteristics are single distribution center, multiple
products, multiple buyers. Distribution center delivers the multiple produtcs to 56
customers a day. Integer linear programming is used to built the model and the
decision variable is in the form of binary integer. The objective function of the
model is to minimize distribution cost at each period. The mathematical model is
solved using LINGO. The result of the model is compared to the existing system
to determine the system having less cost in distribution system. Based on the
optimizing process, the vehicle route can be evaluated. The motorcycle customer
which are located in a car route are delivered by car. By doing this, the delivery
cost decreases about 22,97% compared to the exiting condition. The distribution
cost also decreses about 1,67% and time saving 233,88 minutes compared to the
my previous research. In this research, there are four distribution scenarios that
provide the alternatives to do distribution which may be the consideration for the
distribution center.
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