Research Article
Comparison of LPG Bottle Distribution Cost using North West Corner and Least Cost Methods (Case Study at PT ABC in Samarinda)
@INPROCEEDINGS{10.4108/eai.23-11-2022.2339153, author={Achsal Rivaldi Syahruddin and Aditya Gaffar and Burhanudin Burhanudin and Harummi Sekar Amarilies}, title={Comparison of LPG Bottle Distribution Cost using North West Corner and Least Cost Methods (Case Study at PT ABC in Samarinda)}, proceedings={Proceedings of the International Conference on Sustainable Engineering, Infrastructure and Development, ICO-SEID 2022, 23-24 November 2022, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICO-SEID}, year={2023}, month={12}, keywords={lpg cylinders distribution north west corner least cost modi}, doi={10.4108/eai.23-11-2022.2339153} }- Achsal Rivaldi Syahruddin
Aditya Gaffar
Burhanudin Burhanudin
Harummi Sekar Amarilies
Year: 2023
Comparison of LPG Bottle Distribution Cost using North West Corner and Least Cost Methods (Case Study at PT ABC in Samarinda)
ICO-SEID
EAI
DOI: 10.4108/eai.23-11-2022.2339153
Abstract
PT ABC is a distributor of LPG cylinder products that has responsibilities to distribute 3kg LPG bottles to resellers (merchants/retail agents). The existing distribution route is not yet efficient, thus, there is room for reduction in the total distribution cost. The main goal of this research is to decide the optimized distribution method using North West Corner Method and Least Cost Method, with Modified Distribution Methods to check the results. The results of overall transportation expenses acquired using North West Corner with the assist of MODI and Least Cost Method produce the same cost, that's IDR 3,003,888 for one delivery or IDR 24,031,104 for 8 deliveries with a total of 48,000 cylinders each month. The of Least Cost Method in proven effective since it can reduce the total cost up to 46.6%.