The optimization of distribution and transportation costs for common good products

Authors

  • Fibi Eko Putra Department of Industrial Engineering, Universitas Mercu Buana, Jakarta http://orcid.org/0000-0003-0285-4213
  • Humiras Hardi Purba Department of Industrial Engineering, Universitas Mercu Buana, Jakarta
  • Indah Astri Anggraeni Department of Management, Universitas Bhayangkara Jakarta Raya, Jakarta

DOI:

https://doi.org/10.12928/ijio.v1i2.2368

Keywords:

Transportation Model, Distribution, North West Corner, Stepping Stone

Abstract

Transportation problems, which concerned in finding the minimum cost of transporting a single commodity from a given number of sources to a given number of destinations, are an integral part of the industrial system that has been around for a long time. The number of potential losses caused by transportation problems has made many parties take initiatives and efforts to solve those problems, usually by designing an optimal distribution model. The current study employs two methods named North West Corner (NWC) and Stepping Stone (SS) method in order to find distribution model with the most optimal costs for common good products. Through this research, the NWC method is utilized to generate initial model or solution, while the SS method is used afterward to find the optimal solution. According to it scheme, the result shows that through the NWC method there was cost reduction of $ 8,301, while the distribution model obtained from the Stepping Stone method resulted in a significant cost increased of $ 307,369. Thus, it can be concluded that the use of single method, namely NWC method, in this study provides much better results than using the combined NWC and Stepping Stone method.

Author Biographies

Fibi Eko Putra, Department of Industrial Engineering, Universitas Mercu Buana, Jakarta

Postgraduate Student of Industrial Engineering, Universitas Mercu Buana, Indonesia

Humiras Hardi Purba, Department of Industrial Engineering, Universitas Mercu Buana, Jakarta

Postgraduate Student of Industrial Engineering, Universitas Mercu Buana, Indonesia

Indah Astri Anggraeni, Department of Management, Universitas Bhayangkara Jakarta Raya, Jakarta

Postgraduate Student of Management, Universitas Bhayangkara Jakarta Raya, Indonesia

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Published

2020-08-21

How to Cite

Putra, F. E., Purba, H. H., & Anggraeni, I. A. (2020). The optimization of distribution and transportation costs for common good products. International Journal of Industrial Optimization, 1(2), 111–120. https://doi.org/10.12928/ijio.v1i2.2368

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