Track: Statistics and Empirical Research

Abstract

Activities in the Inventory Routing Problem (IRP) relate to the repeated delivery of a product from one facility to multiple destination sources. Logistics of bulk oil product shipments are part of the IRP. The transport process in the logistics of bulk oil products through the sea lane is very complex because it must consider the inventory level of destination ports. The optimization process is carried out to avoid stock-outs at the destination port while keeping track of the smallest freight and waiting times of the vessel. Problems in IRP include NP-Hard. The exact method used to solve it is by the meta-heuristic method. The Partial Comparison Optimization (PCO) algorithm is a new method developed to solve bulk oil logistics optimization problems. This algorithm is effective enough to get the optimization because the process works discretely to solve the discrete IRP.