Scheduling the optimal LPG distribution using periodic vehicle routing problem: a case study in Indonesian LPG distribution

Abstract

One of the biggest problems faced in distributing products is determining the scheduling of product delivery and delivery routing. Suboptimal delivery schedule and delivery routing of the products will impact seriously to distribution costs. Periodic Vehicle Routing Problem (PVRP) is one of the methods can be used to solve the distribution schedule and routing delivery. This paper studies the application of PVRP method with cluster first second round (CFSR) approach in distribution of Liquefied Petroleum gas (LPG) in Indonesia. The results show that the region of distribution should be clustered into two clusters. Three delivery frequencies of 1 and 2 clusters, gives an optimal solution. The results of delivery routing which are obtained from Lingo software using Ant Colony algorithm indicate that there is a decrease of distances, about 347.19 km from the previous distribution system and it reduces about 25% of the current distribution costs per week