TY - GEN
T1 - Optimization model of truck utilization to minimize outbound logistics cost
AU - Hakim, Inaki Maulida
AU - Abbas, Firani Maussandy H.
N1 - Publisher Copyright:
© 2019 Association for Computing Machinery.
PY - 2019/9/27
Y1 - 2019/9/27
N2 - The increasing market trend in the FMCG industry in Indonesia causes an increase in the volume of goods that must be sent to customers. Along with the increase in the volume of finished goods to be sent, it is also required a greater logistics activities. However, with high logistics costs, companies must increase efficiency to be able compete in the global market. Therefore, it is necessary to plan outbound logistics activities that regulate the movement of finished goods from the factory to the customers. This study developed a mathematical model to minimize outbound logistics costs based on Mixed Integer Linear Programming (MILP) approach, translated into computer model using Lingo 17.0 programming language, and solved with branch and bound algorithm. Outbound logistics costs include storage cost, handling cost, truck cost, and shuttle cost. The results of this 12-period study shows that the total outbound logistics costs decreased, compared to the previous total outbound logistics costs with an average of 39.76% for each period. In addition, this model also shows an increase usage of large capacity trucks so that the number of trucks decreases by an average of 39.10% for each period and truck utilization increases with an average of 15.21% for each period.
AB - The increasing market trend in the FMCG industry in Indonesia causes an increase in the volume of goods that must be sent to customers. Along with the increase in the volume of finished goods to be sent, it is also required a greater logistics activities. However, with high logistics costs, companies must increase efficiency to be able compete in the global market. Therefore, it is necessary to plan outbound logistics activities that regulate the movement of finished goods from the factory to the customers. This study developed a mathematical model to minimize outbound logistics costs based on Mixed Integer Linear Programming (MILP) approach, translated into computer model using Lingo 17.0 programming language, and solved with branch and bound algorithm. Outbound logistics costs include storage cost, handling cost, truck cost, and shuttle cost. The results of this 12-period study shows that the total outbound logistics costs decreased, compared to the previous total outbound logistics costs with an average of 39.76% for each period. In addition, this model also shows an increase usage of large capacity trucks so that the number of trucks decreases by an average of 39.10% for each period and truck utilization increases with an average of 15.21% for each period.
KW - Finished Goods Delivery Planning
KW - FMCG Industry
KW - Mixed Integer Linear Programming
KW - Outbound Logistics
KW - Transportation
UR - http://www.scopus.com/inward/record.url?scp=85076713482&partnerID=8YFLogxK
U2 - 10.1145/3364335.3364362
DO - 10.1145/3364335.3364362
M3 - Conference contribution
AN - SCOPUS:85076713482
T3 - ACM International Conference Proceeding Series
SP - 62
EP - 66
BT - 2019 the 5th International Conference on Industrial and Business Engineering, ICIBE 2019
PB - Association for Computing Machinery
T2 - 5th International Conference on Industrial and Business Engineering, ICIBE 2019
Y2 - 27 September 2019 through 29 September 2019
ER -