<![CDATA[The direct distribution network of Bottled Drinking Water (AMDK) at XYZ Factory to expanding markets causes an excessive travel distance of 564.8 km and high daily variable costs of Rp541,260, resulting in a 31.74% loss of total market share. This study aims to design a two-echelon distribution and routing network to minimize transportation costs and recover unserved markets. The method used is Mixed Integer Linear Programming (MILP) solved via the Gurobi solver. The results demonstrate that establishing Warehouse I as a transit facility and partitioning operations into two main routes utilizing Mitsubishi Colt L300 and Suzuki Carry fleets reduces the total daily travel distance to 499.42 km. Consequently, the daily variable cost is minimized to Rp511,148, achieving a daily savings of Rp30,112 while successfully eliminating the unserved market. These findings confirm that strategic warehouse placement and exact route optimization efficiently fulfill all expanding market demands in an operationally and financially feasible manner.]]>
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