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Optimizing Alcoholic Beverage Distribution Through the Application of the Transportation Method Mukhlistiqamah, MuhamFariz; Pradana, Bayu Ilham
Jurnal Kewirausahaan dan Inovasi Vol. 5 No. 2 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/

Abstract

Purpose – This study aims to optimize the distribution of alcoholic products in categories A, B, and C using transportation method analysis through a case study at PT X in Malang, Tulungagung, and Genteng. Design/Methodology/Approach – This study employed a quantitative approach using a transportation model to determine the optimal distribution allocation. The analysis considered several distribution challenges, including regional demand imbalances, limited fleet availability, and managerial intervention in route determination. Initial solutions were generated using the North West Corner, Least Cost, and Vogel’s Approximation Method (VAM), followed by optimization using the Stepping Stone and MODI methods. Findings – The results indicate that the combination of VAM and MODI methods produces the most optimal distribution plan with the lowest total distribution cost of IDR 9,570,000. The findings demonstrate that transportation method optimization can significantly reduce distribution costs and improve operational efficiency by determining more effective allocation and delivery routes. Originality/Value – This study contributes to logistics and operations management literature by applying transportation optimization methods to address real-world distribution challenges in a multi-location business environment. The study provides empirical evidence that combining initial solution methods with optimization techniques can support more cost-efficient distribution planning. Practically, the findings offer guidance for distribution companies in developing economical delivery strategies, improving resource utilization, and enhancing operational decision-making.