Enhancing Pendulum Nusantara Model in Indonesian Maritime Logistics Network

Abstract

One of the main factors affecting high maritime logistic cost in Indonesia is unbalanced trade between west and east region of Indonesia. Particularly, shipment between two regions were rarely transported using full capacity in both directions. Moreover in many occasion, shipments were carried empty. Therefore, cost of both direction shipment was increased twice or more than normal shipment. Indonesia government has proposed Pendulum Nusantara that guarantees fixed schedule between two regions to cut the logistic cost. This paper generates Indonesia maritime logistic networks using Pendulum Nusantara and enhances it to further bring the cost down and increase profit. The improvements were achieved using combinations of routes that have not considered in Pendulum Nusantara route networks. The problem was modeled as a mixed integer program and a commercial solver was used to generate the solutions. Optimization results show higher profits can be obtained in an acceptable computation time. 