SAVING HEURISTIC IMPLEMENTATION
IN PT PUPUK KUJANG
BY TAKING CASE OF PUSKUD JABAR’S DISTRIBUTION SYSTEM
FINAL PROJECT
By Sekar Hapsari
19004019
Undergraduate Program
School of Business and Management
Institut Teknologi Bandung
2007
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SAVING HEURISTIC IMPLEMENTATION IN PT PUPUK KUJANG
BY TAKING CASE OF PUSKUD JABAR’S DISTRIBUTION SYSTEM
FINAL PROJECT
Name : Sekar Hapsari ID No : 19004019 Examination Date : August 6th 2007 Graduation Date : October 27th 2007
Undergraduate Study Program of Management, Institut Teknologi Bandung 2007 Supervisor : Togar M. Simatupang, Ph.D.
ABSTRACT
Logistic process plays an important role in daily activities. The basic function of distribution management is delivering product from the place where its produce to the place where it is used, including physical activities such as storage and shipping goods, or non-physical activities such as information processing and service to the customers. This function makes a good service to customer, and can be seen on achieved Customer Service Level, completeness of the product in customer’s hand, and satisfied after-sales services. Distribution management system not only concern about delivering product from producer to the end-users but also covers the routing plan and delivery schedule to fulfill customer’s demand. Vehicle Routing Problem (VRP) is a combinatorial optimization problem seeking to service a number of customers with a fleet of vehicles. One of solving method in VRP is Saving Heuristic. This method could reduce the total distance by merging several routes into one route, therefore the ease of total distance give a good impact to total distribution cost, that consist of fixed cost and variable cost. In solving problem using Saving Heuristic method, the first step is determining the distance of each customer’s location. Secondly, make the list of saving that contains only one saving value for each pair of different customers. After that, rank the saving value with non-increasing fashion, which sorted from the highest saving to the lowest saving. This list is used to merge feasibly a pair of routes. Thirdly, define the new route by extracting from the top of the list and merge the customer’s location that possible. If the locations are not possible to be merged, then try to merge with another route that located in the same cluster. By using Saving Heuristic method, the total distance decrease 1,175 km, and the route are reduce from 11 routes to 5 routes. Since the reduction of total distance, the total cost is also decrease in amount of Rp 2.437.500 with 94.2% fleet utilization.
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PENERAPAN SAVING HEURISTICS DI PT PUPUK KUJANG
DENGAN MENGAMBIL STUDI KASUS SISTEM DISTRIBUSI PUSKUD JABAR
TUGAS AKHIR
Nama : Sekar Hapsari No ID : 19004019
Tanggal Ujian Akhir : 6 Agustus 2007 Tanggal Wisuda : 27 Oktober 2007
Program Studi Sarjana Manajenen, Institut Teknologi Bandung 2007 Pembimbing : Togar M. Simatupang, Ph.D.
ABSTRAK
Manajemen sistem distribusi tidak hanya meliputi penyaluran barang dari produsen kepada konsumen saja, tetapi juga meliputi pengaturan jalur distribusi dan penjadwalan pengiriman produk untuk memenuhi kebutuhan konsumen.
Vehicle Routing Problem (VRP) adalah suatu metode yang dapat mengoptimasi
layanan pengantaran produk kepada konsumen menggunakan beberapa armada. Salah satu metode dalam VRP adalah Saving Heuristic. Metode ini menghasilkan penghematan jarak total dari keseluruhan jarak tempuh dengan menggabungkan beberapa jalur pengiriman produk menjadi satu jalur, sehingga dapat menghemat biaya distribusi baik dari segi biaya tetap maupun biaya
variable. Dalam memecahkan permasalahan dengan menggunakan Saving Heuristic, langkah pertama yang dilakukan adalah mengetahui jarak antar setiap
lokasi konsumen (node). Langkah kedua adalah menghitung penghematan yang dihasilkan apabila terjadi penggabungan dua buah jalur yang berbeda tujuan menjadi satu jalur. Hasil yang didapat kemudian diurutkan dari yang paling banyak menghasilkan penghematan, sampai yang paling sedikit. Setelah diperoleh daftar ranking, langkah ketiga adalah menentukan jalur yang harus dipilih sesuai dengan urutan dalam daftar ranking, dan masing-masing permintaan yang akan diantarkan tidak boleh melebihi kapasitas armada dalam satu kali angkut. Metode ini juga mempertimbangkan lokasi konsumen, apabila dari daftar penghematan terdapat lokasi konsumen yang berjauhan, maka kedua lokasi tersebut tidak memungkinkan untuk berada dalam satu jalur pengantaran. Dengan metode tersebut diperoleh pengurangan jalur yang semula berjumlah 11 jalur menjadi 5 jalur pendistribusian. Dari segi jarak tempuh, Saving Heuristic menghasilkan pengurangan 1.175 km, penghematan biaya distribusi sebesar Rp 2.437.500 dengan efisiensi pengangkutan sebesar 94,2%.
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FOREWORD
First of all, the author grants a very special thanks to Allah SWT. Without his blessing, this final report will not finish smoothly. Also the family: Mom, Dad, Sarah, Kosha and Gita for all the supports. This final project is about Saving Heuristics Implementation in PT Pupuk Kujang by Taking Case of PUSKUD JABAR’s Distribution System. Also the author would like to thank the following individuals and groups:
Mr. Togar M. Simatupang
The greatest supervisor, for his assistance in the development of this final project through his careful, patience and thoughtful review.
All SBM Family
Lecturers (esp. Mr. Dermawan Wibisono as my counselor and Mr. Mursyid Hasan Basri as my examiner).
Tutors (esp. Mr. Akbar, Mr. Adit, Mrs. Bertha and Mrs. Nita) Administration staff (esp. Mr. Iwan, Mr. Yayat, and Mrs.
Ikum).
Library staff (Mr. Radjab and Mrs. Wiwiek). All SBM 2007 students.
My teachers in SDN Merdeka 5/VI Bandung, SMPN 22 Bandung, and SMUN 8 Bandung.
Mr. Idih Ruskanda and family, for giving me an opportunity for doing research in PT Pupuk Kujang. God bless you.
PT Pupuk Kujang Cikampek (esp. Mr. Ujang, Mr. Dadi, Mr. Kasimun, and Mrs. Imas).
Insan Buana Prima Putra and family. Thank you for the meaningful supports, and for the priceless & precious moments in the last seven years. Love you.
Ken Ratri Iswari, thank you for everything, you gave me much inspirations and suggestions.
Alamanda Team: Yoan Eldilian, Bunga Indah Asmara, Riri Heryanti, Annisa Anastasia, Ratih Novrita Sari, Avanty Adzanny,
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Astri Ayuningtyas, S. Latifa R. Luddin, Hardi Pramudia, Panji Dwi Asmara, Ardhi Agung Pradana, Gebyar Pandito.
Skinnies: Furry Windie Hapsari, Aulia W. Chamdun, Winna Meidyana, Rany Aulia.
Ria Amalia, Hilmy Asri Sofiah, R. Viki Pratiwi Putri, Windarti Krisdiana, Rina Wulandari, Amalia Rachmawati, Nur Anugerah.
While there are many other individuals and groups that can not mentioned here, the author also owes a lot of special thanks. Last but not least, hopefully this final project reports will bring benefits to all of us. As human beings which lack of perfection, this final report is not free from human errors, therefore suggestion is needed for improvement.
Bandung August 1st 2007
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LIST OF CONTENT
ABSTRACT (ENGLISH) i
ABSTRAK (INDONESIAN) iii
FOREWORD v
LIST OF CONTENT vii
LIST OF IMAGES ix LIST OF TABLES x LIST OF APPENDIX xi CHAPTER I INTRODUCTION 1.1 Background 1 1.2 Problem Statement 2 1.3 Objective 3
1.4 Scope of the Research 3
1.5 Systematic of Writing 4
CHAPTER II STUDY OF LITERATURE 2.1 Supply Chain 5
2.2 Transportation and Distribution Management 5
2.3 Vehicle Routing Problem 7
2.4 Heuristics and Analytics 7
2.5 Travelling Salesman Problem 7
2.6 Nearest-neighbor Heuristic 8
2.7 The Node Routing Problem with Capacity and Length Constraints 9
2.8 Constructive Heuristics 9
CHAPTER III RESEARCH METHODOLOGY 3.1 Research Stages 13
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3.2 Preliminary Study 14
3.3 Problem Statement 14
3.4 Purpose of the Research 14
3.5 Study of Literature 14
3.6 Data Collection 15
3.7 Data Analysis 15
3.8 Conclusion and Implementation Plan 16
CHAPTER IV DATA COLLECTION AND ANALYSIS 4.1 Company Profile 17
4.2 Business Process 19
4.3 Existing Distribution System 23
4.4 Shortcoming of Existing Distribution System 28
4.5 Proposed Solution 28
4.6 Analysis 35
CHAPTER V CONCLUSION AND IMPLEMENTATION PLAN 5.1 Conclusion 39
5.2 Implementation Plan 39
5.2.1 Initiation 39
5.2.2 Socialization 42
5.2.3 Milestone and key Performance Indicator 42
5.2.4 Evaluation 43
REFERENCES 45
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LIST OF IMAGES
Figure 2.1 Supply chain simplification model 5 Figure 2.2 Computation of saving routes 10 Figure 2.3 Merging two routes in a single route 11 Figure 3.1 Research methodology diagram 13 Figure 4.1 Distribution process from manufacture to end-users 22 Figure 4.2 Price procedures at distributor’s stage 23 Figure 4.3 Current distribution routing system 26 Figure 4.4 New routes based on Saving Heuristic method 31 Figure 4.5 Illustration on Microsoft Excel sheet view 33 Figure 4.6 Illustration on Microsoft Excel sheet view 34
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LIST OF TABLES
Table 2.1 General Evaluation of transportation mode 6 Table 4.1 Business process at PT Pupuk Kujang 21 Table 4.2 List of retailer’s location 27 Table 4.3 Distance between retailer’s locations 27
Table 4.4 Saving Value 29
Table 4.5 List of ranking from saving value 30 Table 4.8 Comparing existing and proposed system 35 Table 5.1 Safety stock in proposed distribution system 40 Table 5.2 Proposed delivery schedule in May 2007 41 Table 5.3 Milestone of implementation plan 42
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LIST OF APPENDIX
Appendix A
A1. Total cost of current distribution system and load efficiency 49 A2. Total cost of new distribution system and load efficiency 53
A3. Safety stock calculation 55
Appendix B
Copy of Government Regulations 59
