MODELING DYNAMIC COMPENSATION FOR TRAVELERS IN LOGISTIC SERVICE PROVIDER OPERATION

• Main Author: ADITYA MONIAGA - Nim: 13414040, RYAN
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30738
• Institution: Institut Teknologi Bandung

<p align="justify">Indonesia has a large e-commerce market and requires support from external parties, including support from logistic service providers. PT X is a new logistic service provider that distinguished itself by using plane, train, or car traveler as a courier. PT X rented traveler baggage and gave compensation in return. Currently, PT X’s operational cost is larger than expected by 129%. PT X operational cost consisted of traveler’s compensation and conventional cargo fee. Root cause identification was performed using 5 whys method and resulted in traveler is disinterested with current amount of compensation. A solution of dynamic compensation amount for traveler was suggested, adapting revenue management and dynamic pricing concept. <br /> <br /> This study aimed to model dynamic compensation for traveler in PT X shipment operation using system modeling and simulation as an approach. In existing system, the compensation amount for travelerwas Rp12.500,00/kg. In proposed system, the compensation amount for traveler would change according to package demand and potential traveler’s package ratio. Compensation amount would range from Rp7.500,00/kg to Rp15.000,00/kg. Conceptual models of existing and proposed condition was depicted in influence diagrams and causal loop diagrams. Simulation for 30 days with 10 replication was conducted using Vensim. <br /> <br /> In existing condition simulation, average daily shipment cost was Rp1.142.987,00 with 60% of shipment done by traveler. In proposed condition, average daily shipment cost was Rp1.088.727,00 with 72% of shipment done by traveler. Proposed conditionwas compared with existing condition using Welch confidence interval method and returned a result of proposed condition significantly different and better than existing condition.<p align="justify"> <br />