Comparison study between nearest neighbor and farthest insert algorithms for solving VRP model using heuristic method approach

Abstract

In Indonesia, transportation costs from physical distribution still tend to be high because not all business people can optimize their distribution routes. This paper discusses a comparative study between Nearest Neighbor and Farthest Insert algorithms in solving a Vehicle Routing Problem (VRP) model. Aim of this study is to determine the most optimum distribution route so that the distance or time or transportation costs can be minimized. This research was conducted at a bottled water distribution company. In the end, the comparative study was considered effective as a basis for decision making on the distribution route, where there were indications of distance savings or reduced costs, and increased utilization of the higher vehicle fleet.