Establishing Product Distribution Route of Coca-Cola, Semarang Indonesia

摘要

A company needs to establish the optimal transportation route toward its retailers in order to efficiently distribute its product. The established route includes the length and the order of retailers' visitation which determines the traveling cost. This study proposes methods solving those issues. The available data is the locations including the coordinates of all PT Coca-Cola, Semarang Indonesia retailers. Since the retailers have a tendency to concentrate in the downtown of Semarang, k-medoids algorithm, which is less sensitive to outliers, is employed to cluster the retailers. Clustering is used to define the distribution zone. Meanwhile, Travelling Salesman Problem (TSP) which is utilizing farthest insertion algorithm is used to solve the nearest route and the order of visitation. Instead of being measured by using Euclidean distance matrix, the distance matrix among retailers is measured by employing google maps API to obtain the actual distances. As the result, there are 20 distribution zones and every zone consists of 4–42 retailers. The distribution zone that has 4 retailers has the shortest round trip which distance is 100.773 kilometers. On the other hand, the distribution zone with 42 retailers has the shortest round trip as long as 37.743 kilometers.