Improving the Efficiency of the Milkrun Truck Suppliers in Cikarang Area by Merging the Payload Cycles and Optimizing the Milkrun Route Using the Saving Matrix Methods

Abstract

The declining in people's purchasing power on motor vehicles has a direct impact on the manufacturing industry as a supplier of automotive companies. It is necessary, therefore, to do savings on each side of the company's operations, one of which is the transportation cost. The condition of Cikarang milkrun lorry load with 7 suppliers is not optimal yet, where the cycle 1 is only 70%, and the cycle 2 is only 50% of the total truck capacity. Based on this situation, it's urgent to merge the truckloads of the milkrun cycle 1 and 2 in order to have savings in terms of transportation cost. The insufficiency of the truck capacity to accommodate the total load of the merged capacity of the cycle 1 and 2, is necessary tobe analyzed and refined in term of the palette pattern. The status in the palette pattern of the supplier company should be improved. The supplier can be called independent while the payload is at least of 2 pallets. The optimizing of the milkrun truck capacity is expected to support the merging of milkrun truckloads of the cycle 1 and 2 in term of the transportation cost savings. Furthermore, the rerouting of the milkrun is determined by using saving matrix method. The impact of the reduced milkrun mileage is expected to be an alternative to reduce the cost of transporting milkrun per trip.