| dc.description.abstract |
UMKM Gerai Kimia are micro-scale chemical industries that produce cleaning soap. Product delivery must be in accordance with customer demand and carried out optimally, so that the distribution process does not result in wastage of costs, distance and time. The distribution of products by MSME Chemical outlets is still not effective and random, not paying attention to location, distance to the retail destination and transportation costs which results in large costs incurred by the company. This study aims to minimize distribution costs by optimizing distribution routes by taking into account the location of consumers, the number of consumer requests, the distance from the warehouse to the consumer, and the vehicle load. Optimization of distribution routes is carried out using the saving matrix method so as to shorten travel distances, shorten time, and save on distribution costs. Based on the results of the study using the saving matrix method, distribution costs for one year were originally Rp 7.740.000 to Rp. 6.267.998,3 which means that there was a saving of Rp 1.472.001,7 and a cost efficiency of 19.01% for one year.
Keywords: Savings matrix, Distribution, Routing, Transportation
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