Implementation of Heuristic Methods in Supply Chain Network To Determine the Distribution of the Shortest Path

Abstract

Supply chain management is a process of manufacture and delivery of goods to consumers. One of the main factors of supply chain management is supply chain networks. Supply chain networks consist of two main parts, i.e. , the location of production and the distribution process. Both are related to the determination of optimum distribution channels or routes from producers to consumers which are related to time, distance, and vehicle capacity. This problem is called with the Vehicle Routing Problem with Time Windows (VRPTW). This research work was conducted in the supply chain division of KATRACO CV, a private company that engaged in the distribution of fuel oil to gas stations and several companies in Central Java and surrounding areas. This research aims to design a supply chain network for VRPTW case to minimize the total distance. In this work we used a heuristic method , i.e. , sweep heuristic, saving heuristic, and the nearest depot heuristic as constructing route. We also used 2-opt, relocate, and exchange methods as route improvement methods to determine a better routes. Furthermore, VRPTW problem is solved using ILOG Dispatcher program version 2.1 and ILOG Solver version 4.4, which is run in Microsoft Visual C + + version 6.0.