Journal of Agri Socio Economics and Business
Vol 3, No 2 (2021)

Optimization of Distribution Cost (a Case study in PT. Zamrud Bumi Indonesia)

Shilvaisnaeni Regia (Universitas Kuningan)
Robi Awaluddin (Unknown)
Ayus Ahmad Yusuf (IAIN Syekh Nurjati Cirebon)



Article Info

Publish Date
30 Dec 2021

Abstract

PT. Zamrud Bumi Indonesia is a manufacturing company engaged in the processing of multipurpose liquid organic agricultural fertilizer branded Power Bumi. Distribution from warehouses to destinations that vary in distance resulted in different distribution cost budgets. Transportation models can help solve the problem of distributing products from multiple warehouses to multiple destination cities and reduce total distribution costs. This study aims to find out the total minimum cost of distribution by using the Least Cost method as the initial solution and knowing the test results of MODI method as the optimum solution at PT. Zamrud Bumi Indonesia. The results of this study showed that before using the Transportation Method, the company incurred a distribution fee of Rp. 11.600.000,- in December 2020, after using the Least Cost transportation method as the initial solution of distribution costs incurred in the amount of Rp. 9.981.250,- and modi transportation method as the optimum test resulted in the same value of Rp. 9,981,250. So the company saves distribution costs of Rp. 1.618.750,- every month

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Journal Info

Abbrev

JASEB

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Social Sciences

Description

1) Agriculture, 2) Resource Economics, 3) Agribusiness Management, 4) Rural Sociology, 5) Agrarian Studies, 6) Agribusiness Development, 7) Agricultural Policies and Policies, 8) Natural Resources and Environmental Management, and 9) Development Agriculture and ...