Optimizing Distribution Strategy Considering Location, Route, Fleet, And Capacity Factors (Case Study: PT. Arga Arta Utama)

• Main Author: Hidayat 29115149, Isnan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28163
• Institution: Institut Teknologi Bandung

With roughly 1.14% of growth from the 2015 to 2016, projected population of Indonesia in 2017 would be over 266millions of people. Increasing population growth will caused in increased human needs. With respect to this, the average expenditure allocation for household consumption of Indonesia in 2016 is 25,7% per capita. This causes increase in demand for household appliances. <br /> <br /> PT. Arga Arta Utama is one of the companies which produce household appliances. To deliver their products, the company uses 3 vehicles to distribute to 7 branches in Java Island. The delivery system they used is one trip delivery meaning that once vehicles dispatched from the factory the vehicle delivered the product to one branch only and immediately returning back to the factory. This condition forced the company to use expedition service more often. <br /> <br /> Aiming to grow, the company are looking for a better cost efficiency to maximize profit. To solve this problem, the author proposes indirect distribution strategy using Distribution Center with Center-of-Gravity location model and maximize their vehicles utilization by using Vehicle Routing Problem. The proposed solution for this research is to make one of the branches as Distribution Center and deliver the product to the remaining branches using vehicle routing problem. The solution proposed should be able to minimize the delivery cost as well as increase the revenue of PT. Arga Arta Utama. <br />