Optimization of Logistics Delivery Costs at PT. XYZ
DOI:
https://doi.org/10.52920/jttl.v7i1.594Keywords:
distribution costs, linear programing, optimizationAbstract
In economic activities, distribution plays an important role in ensuring that a product reaches consumers who in the process require financing where business actors are burdened with a lot of operational costs, especially logistics distribution costs. This study aims to obtain the optimal route in the distribution of goods at PT. XYZ from each warehouse owned to each distribution area based on the number of requests and offers by minimizing the cost of distributing goods objects using a linear program with the NWC method (North West Corner) as the initial adjustment, then continuing to use the Stepping Stone method as the optimal solution whose results are validated by the LINGO application. The results obtained are the optimal distribution route of UREA fertilizer products where the distribution cost can be saved by 8.12 % from the initial cost of Rp.87,368,195,- per month to Rp. 80,805,545,-.
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