ABSTRACT This study was conducted to obtain the optimal transport costs in the distribution of subsidized fertilizer in PT. GCS and PT.PPI. This research was done in two steps is to create a transport model of the data obtained and determine its solution initially with Least Cost method, and determine the optimal solution with ModifiedDistribution (MODI) method. Based on research that obtained the initial solution is Rp. 65.040.000 and optimal solution is Rp. 64.950.000. While the cost of transportation from the company is RP. 70.500.000. This shows that both distributors can optimize the total cost of transport for the distribution of subsidized fertilizer in January 2017 with the distribution cost savings of Rp. 5.550.000. Keywords      : Least Cost Method, Modified Method of Distribution, Optimization, Transportation

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PT. Buccheri Indonesia is a company engaged in the sale of shoes, sandals and bags. These days the high level of competition in the shoes and sandals industry makes every manufacturer of shoes and sandals must pay close attention to market changes. Inventory is the most important thing in a company and has an important influence on business functions, especially the operational functions of marketing, which includes ordering costs and storage costs, so inventory optimization is needed. In this study, the author uses the Economic Order Quantity method to optimize shoes inventory. This study aims find to are out the point of reorder, order frequency, and comparison between company policy and Economic Order Quantity method. PT. Buccheri Indonesia stipulates the number of orders on each time order is 5,943 pairs of shoes, with the frequency of ordering 48 times/year, and the inventory’s total cost is Rp.406,843,938. While using the Economic Order Quantity method the number of orders on each time is 7,214 pairs of shoes, the frequency ordering 39 times/year, and the inventory’s total cost is Rp.396,776,965.06. So, the difference cost of company policies and by using the Economic Order Quantity method, is Rp.10,066,972.94,-

This study was conducted to obtain optimal costs of transportation in the distribution of Ceramics at PT. Indah Bangunan Palu. This research is carried out by several steps such as: making the model transportation of obtained the data, determining the initial solution by the method of Least cost, and finding the optimal solution with Modified Distribution (MODI) method. The research results showed that an initial solution is 𝑅𝑝. 53.919.000 and the optimal solution is 𝑅𝑝. 53.756.000. On the other hand the transportation cost from the company before optimization is 𝑅𝑝. 62.126.000. This indicates that PT. Indah Bangunan Palu can optimize the costs of transport for the distribution of ceramics on September 2016 with a cost savings of 𝑅𝑝. 8.370.000 or 13%