Abstract
This study was conducted to obtain optimal costs of transportation in the distribution of Ceramics at PT. Indah Bangunan Palu. This research is carried out by several steps such as: making the model transportation of obtained the data, determining the initial solution by the method of Least cost, and finding the optimal solution with Modified Distribution (MODI) method. The research results showed that an initial solution is 𝑅𝑝. 53.919.000 and the optimal solution is 𝑅𝑝. 53.756.000. On the other hand the transportation cost from the company before optimization is 𝑅𝑝. 62.126.000. This indicates that PT. Indah Bangunan Palu can optimize the costs of transport for the distribution of ceramics on September 2016 with a cost savings of 𝑅𝑝. 8.370.000 or 13%
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