Track: Supply Chain Management

Abstract

The main factors in achieving maximum company profits is the distribution of goods/products. Optimal distribution means that the product is received by the consumer in the right quantity, in good condition, at the time promised and at a low cost. One example in the case of the newspaper industry, there is a problem related to determining vehicle routes that aim to minimize route distances and minimize transportation costs from distribution warehouses to consumers or what is commonly called the Capacitated Vehicle Routing Problem (CVRP). CVRP is related to determining the distribution channel of a product optimally. The purpose of this research is the formation of the Capacitated Vehicle Routing Problem model on the daily distribution route problem of PT. ABC in the Solo Raya area by using a comparison between the sweep algorithm and the heuristic algorithm. The results of the study showed that the best method to solve CVRP problems at PT. ABC is a heuristic algorithm with less distance traveled than the sweep algorithm method.

Keywords

Capacitated Vehicle Routing Problem (CVRP), Distribution Route, Heuristic Algorithm, Newspaper Company, and Sweep Algorithm