Simulation of product distribution PT Anugrah Citra Boga by using vehicle routing problem with time window method to minimize the distribution cost

Anugrah Citra Boga is a food processing industry that produces meatballs as their main product. One of the problems in the company is the distribution of the products. Moreover, the distribution cost was never examined scientifically to obtain the optimal value. By simulating the distribution route to minimize the distribution time, then lower cost of the distribution will be expected. Therefore, the purpose of this research is to optimize the distribution time by simulating the distribution channels with vehicle routing problem time window method. Firstly, the distribution route is observed to determine the average speed, time, capacity and shipping costs based on two months of observation. Then build the model by using Advanced Interactive Multidimensional Modeling System (AIMMS) software to optimize the distribution time. Data that are required to simulate the model are customer locations, distances, process time (time needed to unload the vehicle until they depart from the customer), and the time window (arrival time at the customer). A few constraints in this model that needed to be considered namely number of vehicles, load capacity for each vehicle, arrival time, and work hours. As the result of this simulation, the total distribution time in one week can be reduced from 5126 minutes to 5006 minutes. It also reduces extra work hours (overtime) for drivers so the cost can be decreased. The utilization for the first vehicle that has current value of 84% becomes 77%. Meanwhile, the utilization for the second vehicle increases from 88% to 91%. Finally, the distribution cost can be reduced up to IDR 1 million per month (around 5 percent).