This research aims to determine the optimal logistics distribution allocation through a transportation model, apply the Modified Distribution (MODI) algorithm to obtain minimum distribution costs, and utilize LINGO software to validate the optimization results. This study uses a quantitative approach with a numerical simulation on a balanced transportation model involving three supply source plants and three distribution destination warehouses. The determination of the initial basic solution was completed using Vogel’s Approximation Method (VAM), followed by an optimality test using the MODI method, and computational verification via LINGO software. The results showed that the VAM method produced a feasible initial basic solution with a total distribution cost of IDR 9,450. Through the MODI optimality test, an optimal distribution solution was obtained in the second iteration with a final minimum total cost of IDR 9,150. This yielded a concrete logistical cost saving of IDR 300 or a budget efficiency of 3.17% from the initial solution. The manual calculation results showed complete alignment and were 100% identical to the computational output from LINGO, proving that the developed model is mathematically valid and accurate.
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