The transportation problem is a special form of linear programming aimed at minimizing distribution costs from multiple sources to multiple destinations. This study optimizes the cost of distributing goods between major Indonesian ports using data from the Central Bureau of Statistics (BPS) on Loading/Unloading of Inter-Island Sea Cargo at Major Ports in February 2026. The objective is to determine the initial solution using the North West Corner (NWC) method and optimize it using the Modified Distribution Method (MODI). The study involves three major ports acting both as sources and destinations: Tanjung Priok, Tanjung Perak, and Makassar. Due to supply-demand imbalance, a dummy source was added. The NWC method produced an initial total cost of IDR 25,637,065,000. After optimization using MODI, the total cost decreased to IDR 16,020,765,000, resulting in savings of IDR 9,616,300,000 (37.5%). These findings prove that the combination of NWC and MODI is highly effective in minimizing transportation costs for inter-island goods distribution in Indonesia.
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