COST OPTIMIZATION IN DETERMINING THE DISTRIBUTION ROUTE OF FABRIC PRODUCT USING THE SAVINGS MATRIX METHOD

Abstract

PT X is a supplier of dyed fabrics which has several customers in the Bandung area including
PT Mentari Mandiri, PT KSM, CV SAM, CV Mulya Jaya, PT Sunny and PT Badjatex. The
problem that PT Waitex is currently experiencing is an increase in the cost of shipping fabrics.
This can be seen from the average shipping cost in the last three years (2015 - 2017) which
amounted to Rp. 156,290,000, an increase in 2018 to Rp. 169,780,000 or 7.94%. The factors
that increase shipping costs and can also cause potential losses for companies according to
Badria (2008) are product allocation and determination of delivery routes. This study aims to
determine the optimal route in the distribution of fabric products and to determine the minimum
distribution cost savings after repairs. Data collection is done by collecting secondary data in
the company. Data processing is done by using the Saving Matrix method. The Savings Matrix
method is a method used to determine the product distribution route to the marketing area by
determining the distribution route that must be traversed and the number of vehicles based on
vehicle capacity in order to obtain the shortest route and minimal shipping costs. The route
resulting from the calculation of the Saving Matrix method has been reduced from 6 routes to
4 delivery routes. The initial route of the company's delivery, which originally amounted to
143.4 Km, has decreased to 133.7 Km using the Saving Matrix method or reduced by 9.7 Km.
The shipping cost incurred from the calculation of the Saving Matrix method is IDR 856,595.21
/ day, reduced from the initial route of IDR 1,260,701.22 / day. Thus it can be concluded that
the Saving Matrix Method is better than the initial method of the company with distance
savings of 32.05% and cost savings of Rp. 404,106.01 / day.