MATEC Web Conf.
Volume 204, 2018International Mechanical and Industrial Engineering Conference 2018 (IMIEC 2018)
|Number of page(s)||7|
|Published online||21 September 2018|
Optimization of inbound logistics cost in automotive industry
Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, 16424 Depok, Indonesia
Corresponding author: firstname.lastname@example.org
The increasing growth of automotive industry in Indonesia has not been matched by the number of local suppliers and makes the automotive industry too dependent on imported raw materials. Along with the needs of import activities, it is also required a greater logistics activities. However, with high logistics costs, the manufacturer must increase efficiency to be able to compete in the global market. This can be accomplished by planning inbound logistics activities that control the movement of materials from suppliers to the manufacture. In this research, an optimization methodology, based on Mixed Integer Nonlinear Programming (MINLP) approach is developed and solved with branch and bound algorithm. The result of this research, which obtained the total cost of optimal inbound logistics include material cost, transportation cost, and administration cost. This model can also be used as a tool for the company in making decisions about the type and the number of container also with the total of the optimal material load in each container, therefore the optimal container space utilization value can be obtained.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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