OPTIMIZATION OF DELIVERY COSTS USING VOGEL'S APPROXIMATION METHOD (VAM) AND STEPPING STONE METHODE

Abstract

Distribution is the delivery of goods from source to destination. Transporting
goods from source to destination requires transportation and distribution costs.
Distributing goods requires cost optimization. This research optimizes costs
using a transportation model. Optimization is an activity to get the best result
under a given situation. The ultimate goal of these activities is to minimize effort
or maximize results. The transportation model is a model used to regulate the
distribution of sources that provide the same product to destinations that need
it optimally. The transportation model can be completed in two stages, namely
the initial solution using the Vogel's Aproximation Method (VAM) and the
optimum solution using the Stepping Stone method. This study aims to
optimize the cost of distribution of goods from source to destination at UD
Yosarita. The results of the study using the Vogel's Aproximation Method
(VAM) as the initial solution and the Stepping Stone method as the optimum
solution in April 2019 were Rp.4,615,000, in May 2019 Rp.4,810,000, in June
2019 Rp. 4,910,000.