JUMEBIN : Journal of Management, Economics, Business, and Investment
Vol. 1 No. 2 (2025): December 2025

Optimization of Crude Palm Oil (CPO) Transportation Costs at PT Pelita Jaya Using a Transportation Model

Khayru Aqillah (Sekolah Tinggi Ilmu Manajemen Sukma, Medan, Indonesia)
Sartika Garingging (Sekolah Tinggi Ilmu Manajemen Sukma, Medan, Indonesia)
Ulul Azmi (Sekolah Tinggi Ilmu Manajemen Sukma, Medan, Indonesia)
Ahmad Albar Tanjung (Sekolah Tinggi Ilmu Manajemen Sukma, Medan, Indonesia)



Article Info

Publish Date
27 Dec 2025

Abstract

As a company engaged in the field of CPO transportation , PT Pelita Jaya is also present in carrying out expeditions from the loading location to the destination (unloading). The company faces challenges in allocating a total of 900 tons of CPO from three PKS PT PTPN IV (Bah Jambi, Dolok Hilir, Pabatu) to three destination depots (PT MNA, PT KPBN, PT SMART) to achieve the lowest cost. This study aims to optimize the cost of Crude Palm Oil (CPO) transportation at PT Pelita Jaya. The type of data used is primary data with data collection through interviews and observations field. Researchers use a transportation model as a quantitative approach from Operations Research. Solutions are sought using three methods: Northwest Corner (NWC), Vogel's Approximation (VAM), and Stepping-Stone. with POM QM for Windows as tool supporters data processing . The results identified the optimal allocation that minimizes total costs: Bah Jambi PKS (340 tons) is allocated entirely to PT MNA; Dolok Hilir PKS (260 tons) is allocated entirely to PT SMART (260 tons); and Pabatu PKS (300 tons) is allocated to PT MNA (60 tons), PT KPBN (200 tons) and PT SMART (40 tons). The application of this model has proven successful in providing strategic recommendations to minimize logistics costs and improve distribution efficiency at PT Pelita Jaya.

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Journal Info

Abbrev

jumebin

Publisher

Subject

Economics, Econometrics & Finance

Description

JUMEBIN: Journal of Management, Economics, Business, and Investment is a scientific journal committed to publishing high-quality articles resulting from research and conceptual studies in the fields of Management, Economics, Business, and Investment. Every manuscript published undergoes a Double ...