DETERMINATION OF DELIVERY FUEL DISTRIBUTION ROUTES TO MINIMIZE TOTAL DISTRIBUTION COSTS WITH THE SAVING MATRIX METHOD AT PT. ENERGI NIAGA UTAMA

Abstract

Transportation and distribution are two components that affect a company's competitive advantage because a decrease in distribution costs can indirectly increase the company's profits. The higher the level of competition, it requires companies to be able to make good distribution strategies. Some of the problems that exist in PT. Energi Niaga Utama in distributing diesel fuel to companies is the delay in the distribution process, in which diesel fuel uses a 16 KL tank car. Therefore, this study wants to minimize the total route and distribution costs to provide profits and minimize company losses. In this study, the determination of the saving matrix method helps solve distribution problems. Based on the calculation using the saving matrix method, two stages of delivery were obtained with as many as 12 shipping routes so that each company did not delay the delivery of diesel fuel for the company's initial route distance of 2,018.6 km with a total distribution cost of Rp. 11.959.158, by using the saving matrix method, can provide distance savings of 1,552.8 km with a total distribution cost of Rp. 11.300.240, the percentage of distance savings is 23.07%, and the percentage of distribution cost savings is 5.5%.