11th Annual International Conference on Industrial Engineering and Operations Management

Application of Vehicle Routing Problem to Determine Optimal Route in Fuel Distribution: A Case Study

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Track: Operations Management
Abstract

As a country with quite a lot of motorized vehicle users, fuel is an important requirement for the Indonesian people. Apart from being used for transportation, fuel is also used to support various sectors. Thus, the supply of fuel is something that is vital to pay attention to, especially in relation to fuel distribution. Problems related to the distribution of fuel include making decisions regarding the distribution routes between gas stations. The choice of vehicle route will determine the total distance traveled by the fleet to create an optimal distribution system, so that route selection must be effective and efficient. This study discusses the distribution of fuel from Boyolali Fuel Terminal to gas stations in several of the residences in Surakarta and western eastern Java. Vehicle Routing Problem (VRP) is used to solve the problem and Google OR-Tools Algorithm and Python programming are used to get the minimum total distance from the fuel transport truck. The results of this study are the acquisition of a new distribution route so that the distance of transportation decreases by about 60% than before.

Keywords

Fuel, distribution route, vehicle routing problem

Published in: 11th Annual International Conference on Industrial Engineering and Operations Management, Singapore, Singapore

Publisher: IEOM Society International
Date of Conference: March 7-11, 2021

ISBN: 978-1-7923-6124-1
ISSN/E-ISSN: 2169-8767