Optimization of Component Transportation Costs with Narrow Service Time Window and Heterogenous Vehicle Capacity

Abstract

Transportation costs are one of the largest cost components in distribution activities.
Transportation costs can be reduced by improving distribution routes. The aims of this article
are to minimize transportation costs by determining vehicle assignments and routing for
heterogeneous vehicles. The constrains that considered are the number and capacity of the
vehicle, fuel consumption, service time at the company and at customers plant. Total
transportation costs are considered as vehicle fixed costs, fuel costs, and material handling costs.
CVRPTW is applied to the problem of assigning and determining vehicle routes of plastic
component companies that supply plastic components for various manufacturing companies in
the Greater Jakarta area. CVRPTW can reduce transportation costs in the company while still
meet all applicable constraints. CVRPTW reduced the number of vehicles used from the
previous 6 vehicles to 5 vehicles. Total transportation costs for all shipping routes are Rp.
4,563,620. This cost is lower than the company costs of Rp. 4,694,100, this routing problem
reduces transportation costs by 8% of the initial cost.