Efficient product distribution is a key driver of the overall profitability of a company. The high cost of product distribution in food SMEs is caused by the absence of a proper distribution cost calculation to obtain optimal distribution decisions. This research aims to provide SMEs with a product distribution model with the lowest cost. A Heterogenous Fleet Vehicle Routing Problem (HVRP) for SMEs product distribution is modeled in the form of Integer Linear Programming and solved using branch-and-bound algorithm to obtain an optimal route and vehicle assignment with the lowest cost. The result of this research is a model that can be used by SMEs to make daily product distribution decision.
|Journal||MATEC Web of Conferences|
|Publication status||Published - 10 Dec 2018|
|Event||4th Engineering Science and Technology International Conference, ESTIC 2018 - Padang, West Sumatra, Indonesia|
Duration: 28 Aug 2018 → 29 Aug 2018