Optimal Routing in Supply Chain Network Design

Abstract

This study aims to design a transportation network in a fresh banana supply chain to minimize the distance, route, and vehicles. The design of the network is based on graph theory, which is the Cheapest Insertion Heuristic Algorithm for Traveling Salesman Program, and is expected to guarantee fresh banana products in a supply chain starting from a supplier of seed, compound fertilizer, PTPN VIII, distribution center (ripening stage), retailers, and consumers. Design of the transportation system in the supply chain of fresh bananas. There are two distribution centers and 26 retail locations in the two cities that must guarantee the availability of fresh bananas to meet the demands of the community in West Java Province. The distribution of fresh bananas in a transport system uses the cheapest insertion heuristic algorithm. Optimization of a fresh banana transportation system will streamline supply chain activities in PTPN VIII, thus ensuring the fulfillment of the demand and availability of fresh banana products in West Java Province. This research has implications for the performance of PTPN VIII in improving the optimization of fresh banana supply chain systems. This study will explicitly describe the distance, routes and optimum vehicle types in order to minimize transportation costs, resulting in a transportation cost reduction of 25.24%.