The optimization of distribution and transportation costs for common good products

Abstract

Transportation problems, which concerned in finding the minimum cost of transporting a single commodity from a given number of sources to a given number of destinations, are an integral part of the industrial system that has been around for a long time. The number of potential losses caused by transportation problems has made many parties take initiatives and efforts to solve those problems, usually by designing an optimal distribution model. The current study employs two methods named North West Corner (NWC) and Stepping Stone (SS) method in order to find distribution model with the most optimal costs for common good products. Through this research, the NWC method is utilized to generate initial model or solution, while the SS method is used afterward to find the optimal solution. According to it scheme, the result shows that through the NWC method there was cost reduction of $ 8,301, while the distribution model obtained from the Stepping Stone method resulted in a significant cost increased of $ 307,369. Thus, it can be concluded that the use of single method, namely NWC method, in this study provides much better results than using the combined NWC and Stepping Stone method.

Optimization of Algorithms and Models in Two Scenarios for Picking up-Dropping off Disaster Victims in Islands Cities

“…This research uses two case approaches, namely bringing disaster victims to the main health facility and bringing disaster victims to the nearest health facility. The first approach uses the Northwest Corner method (NWC) [10], [11] and the second approach uses the Vogel's Approximation Method (VAM) [12], [13].…”

Optimasi Pendistribusian Buah Sawit Dengan Metode Least Cost

“…Proses pendistribusian yang tepat akan berdampak efisien terhadap biaya transportasi dengan menggunakan metode Least Cost untuk memilih rute pengiriman barang dengan ongkos yang minimum [6]. Metode Least Cost dapat mengoptimalkan biaya distribusi karena memilih biaya pengiriman barang yang kecil dalam tahapan iterasi dan dengan kombinasi metode Stepping Stone [7] [8]. Selain metode Stepping Stone, metode Least Cost dapat dikombinasikan dengan metode Critical Path Methode untuk menentukan jaringanjaringan pendistribusian dan di optimalkan dengan metode Least Cost [9].…”

Determine the optimal location for the industrial facility

“…[8] So that the transport inputs at one point will replace the transport inputs at another point with the change of distance. On this basis, a comparison is made to choose the point where the transportation cost is the least possible [9]. The nature of the transformation lines depends on the relative distance of the different points.…”