Implementation of heuristic algorithm on capacitated vehicle routing problem (CVRP) for product distribution.

Distribution is one of the activities included in the main component of the downstream supply chain segment in supply chain management. An effective and efficient distribution process is one of the factors whose position is starting to align with other indicators in its efforts to achieve customer satisfaction. The higher the level of competition in the industrial world will require companies to make better distribution strategies. On the other hand, distribution can generate the highest costs. Therefore, it is essential to keep distribution costs to a minimum by optimizing vehicle routes for product distribution. Determining the optimal route for distribution is known as the Vehicle Routing Problem (VRP), a distribution problem to find a series of routes for several vehicles with a specific capacity from one or more depots to serve customers. There are several methods to solve CVRP problems, among others, using two approaches, namely the exact approach and the heuristic approach. This study applies several approaches, namely, using a heuristic and an exact approach to obtain the most optimal route implemented in the distribution of three kilograms of LPG cylinders. Based on the data processing results in solving this CVRP problem, the total vehicle mileage obtained is 161 km (using a heuristic approach) and 159.6 km (using an exact approach). In comparison, the whole vehicle mileage of this company is 200.9 km. Thus, the heuristic approach can provide mileage savings with a percentage of 19.86% and an exact approach of 20.56%. [ABSTRACT FROM AUTHOR]