Research Article
Determining Route of Distribution to Minimize Transportation Costs Using Saving Matrix Methodin PT. X
@INPROCEEDINGS{10.4108/eai.20-1-2018.2281936, author={Muhammad Zakaria and Cut Ita Erliana and Romi M Sitompul}, title={Determining Route of Distribution to Minimize Transportation Costs Using Saving Matrix Methodin PT. X}, proceedings={Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia}, publisher={EAI}, proceedings_a={WMA-1}, year={2019}, month={9}, keywords={distribution transportation minimum cost saving cost matrix}, doi={10.4108/eai.20-1-2018.2281936} }- Muhammad Zakaria
Cut Ita Erliana
Romi M Sitompul
Year: 2019
Determining Route of Distribution to Minimize Transportation Costs Using Saving Matrix Methodin PT. X
WMA-1
EAI
DOI: 10.4108/eai.20-1-2018.2281936
Abstract
This study aims to determine the distribution route of goods that can minimize transportation costs in PT.X.Methodology of problem solving approach in this research is saving cost matrix method.This study provides alternative route of distribution that must be passed by as many as 12 routes with 505.08 km distance, and total transportation cost IDR 15.434.394, while the previous transportation cost is IDR 18.138.897, - per distribution cycle, resulting in cost savings transportation of IDR 2,704,503, or 14.9% cost savings per distribution cycle.Distribution areas under study include the area of North Sumatra with several sub distributors to Medan, Kabanjahe, Tebing Tinggi, Pematang Siantar, Indrapura, Rantau Prapat, Kisaran, Padang Sidempuan, Balige and Sibolga which are then distributed to foodstore (super market and mini market) and traditional outlets (wholesale).