NETWORK DESIGN – FASTEN THE SOCIAL AID DELIVERY USING MULTI HUB AND VEHICLE ROUTING PROBLEM

• Main Author: Eka Putra Herwanto, Yosua
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53084
• Institution: Institut Teknologi Bandung

When the Coronavirus outbreak occurred in Indonesia, the economy was one of the sectors that got hit so badly by this pandemic. A large number of people got fired from their company and small businesses cannot open their shops because of social restriction policy. The impact of this situation is an increase of poverty rate. One of the government programs to heal the economic sectors and help poor people is social aid. Families living under the poverty lines are listed on the national Pemutakhiran Basis Data Terpadu database provided by Ministry of Social Affairs. Accurate vehicle routing would be the key so that social aid can be delivered on time. The primary purpose of network design is to assess company policies or programs, and to meet targets accomplish long-term strategic objectives, and most business units or functional areas within a company are impacted by a network design project (Tompkins, 2016). Although in this study the case used is not a case that occurs in a company, the right network design is the key so that the delivery of social aid can be faster than it is now. A method that is easy to use and can produce optimal results in short period of time is sweep method. Multi Hub system is also one of the ways to speed up the delivery process. Location of the Hub and optimum routing will be the key to make future implementation plan to use. The main way to determine the location of Hub is by using Center of Gravity method. After that, the routing will be determined by Vehicle Routing Problem with Sweep Method. A case study is used to shows the implementation of both models. Bandung, one of the big city in Indonesia with 110,137 beneficiaries is chosen. In addition to colleting the required data from the relevan parties, in-depth interview with the main actor of social aid delivery, PT Pos Indonesia also necessary in order to learn more why the delay in social aid delivery is still happening. The results from this modeling show that by using three Hubs and one truck for each Hub, the delivery can be finished under ten working hours. And it is a significant improvement compared to the current delivery conditions. Supported by a clear implementation plan, this network design can be the answer to fasten social aid delivery.