Optimization of Channel Distribution for Capacitated Vehicle Routing Problem (CVRP): A Case Study of BULOG in East Lombok Regency
Ahmad Rizal Sopiandi(a*), Erfina Nagata(a), Tika Endah Lestari(a)

a) Department Industrial Engineering, Sampoerna University, Jakarta, Indonesia *ahmad.sopiandi[at]my.sampoernauniversity.ac.id

Abstract

The issue of late delivery is critical in the logistic management of a company. It plays an important role in the success of distribution activity and also essential in determining the customer satisfaction level. Solving the late delivery issue in distribution activity could increase the level of trust and loyalty of the customer and resolute the company’s market value that aligns with the revenue and cost. This study presents the optimization of the route distribution of BULOG in East Lombok Regency using the Differential Evolution (DE) algorithm and Large Neighborhood Search (LNS) algorithm method. The study found that the existing route distribution of BULOG has been optimal compared to the route distribution result from the DE algorithm method. However, if we compared the existing route distribution with a new distribution route that resulted in using the LNS algorithm, then the study found that the new route distribution is more optimized. This is proven by the deduction of 33.74 km of travelled distance and cost savings of 12.19% from the total cost of transportation.

Keywords: Distribution Activity, Channel Distribution, Differential Evolution Algorithm, Large Neighborhood Search Algorithm

Topic: Industry Engineering