MINIMIZING COST BY OPTIMIZING THE HIRING LOCATIONS OF A SHIPPING COMPANY USING THE TRANSPORTATION MODEL

• Main Author: Tobias Hendra, Jeremy
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/87457
• Institution: Institut Teknologi Bandung

Optimization is important for a company as it creates cost minimization or profit maximization. The idea of a company to optimize a certain aspect of its company is to utilize possessed resources in the most efficient manner. As a shipping company that focuses on vessel management, optimization became an important part for PT. Bateau, especially for its crewing hiring operational activities. The main objective of this paper is to optimize the crewing operational activities by finding the most cost-efficient hiring locations for certain routes, hence minimizing the ticket cost while supplying all of the demands. The researcher collected their primary data by conducting interviews with several company personnels and were given datasets and information by the company’s employees, counting as secondary data used for the research. A data cleanup was conducted on the given dataset in order to ensure the usability of the dataset for the main analysis of this research. Before the main analysis is conducted, a descriptive analysis is used to find important information regarding the cost and the supply and demand. The research was conducted by utilizing the Transportation Model derived from Linear Programming in effort of finding the most optimal hiring locations while minimizing the cost concurrently. The results show the usability of the Transportation Model to find the most efficient hiring locations and minimizing cost simultaneously. The model proved its applicability for this company, which suggest the ability for other companies to apply Transportation Model when trying to optimize their cost or profit.