Abstract

This research discusses the optimization of the route design to distribute rice by Indonesia Public Logistics Company which is Company X. The method used in this research is Saving Matrix. Saving Matrix is a method to determine the distribution route by specifying the distribution route to be passed and the number of vehicles based on the capacity of the vehicle to obtain the shortest route and minimal transportation costs. The results from the data processing and analysing shows that the routes change from 18 to 9 new routes, and it obtained the distance saving of 752.2 Km or 45.91% from the initial distance of 1638.3 Km to 886.2 Km. The initial transportation cost before applying the saving matrix method is Rp 1,925,120/month, and the transportation cost after the implementation of the saving matrix method on Route 1 to route 9 amounted to Rp 1,041,285/month. Therefore, the savings transportation costs are Rp 888,835/month or 45.91%.