MATEC Web Conf.
Volume 248, 20184th Engineering Science and Technology International Conference (ESTIC 2018)
|Number of page(s)||5|
|Published online||10 December 2018|
Product Distribution Optimization in Food SMEs with Integer Linear Programming
Industrial Engineering Department, Universitas Indonesia
* Corresponding author: firstname.lastname@example.org
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.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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