Optimization production and distribution using production routing problem with perishable inventory (PRPPI) models

Abstract

This paper discussed about optimization production and distribution problem of tempe using Production Routing problem with Perishable Inventory (PRPPI) models with First Produce, First Deliver (FPFD) and First Produce First Selling (FPFS) inventory management policy. Tempe is a food made from soy fermentation and distributed from the depot to retailers. There are three retailers, namely Perumnas market, Sekip market and Kebon Semai market respectively as retailer 1, 2 and 3, and Ana depot is defined as retailer 0. An exact Branch and Bound algorithm was developed and solved by Lingo 17.0 Software. The results of minimum cost production and distribution retailer 0 was 69,174 rupiah, optimal amount of tempe production 34 pieces. The shipping routes starting from retailer 0 to retailer 1, proceed to retailer 2 and then to retailer 3 finally return to retailer 0.