OPTIMIZING VEHICLES ROUTING IN RPX COMPANY WITH SAVING HEURISTIC METHOD. By Mandala Widi Muchlis

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1 OPTIMIZING VEHICLES ROUTING IN RPX COMPANY WITH SAVING HEURISTIC METHOD By Mandala Widi Muchlis Undergraduate Program School of Business and Management Institut Teknologi Bandung 2007

2 ABSTRACT Mandala Widi Muchlis Date of Final Examination: August 20, 2007 Date of Graduation: October 27 th, 2007 Graduate Program, Institute Technology Bandung, 2007 Thesis Advisor: DR. Ir. Gatot Yudoko This observation cooperates with RPX Holding Company located in Cilandak road, South Jakarta. Background problem that explained in this observation is about overtime of courier work hours. This happened because in the same route, the driver should handle delivery customer goods and pick up delivery. However, the unpredictable traffic condition in Jakarta, makes the company difficult in deciding work hours of couriers. Interview, field observation and literature study are used to get all data in that company. Literature study is important to determine what kind of research question that should be asked. And then try to research deeply with interview and field research. Join courier daily activity, learn working process in delivery service business and define the problem. After getting the problem, the theories that match with the problem are defined. The problem solving method used is vehicles routing problem and saving heuristic method. This method can create a new route design with saving matrix in order to get efficient route in Jakarta traffic condition. However, this observation have limited solving problem. The problem explained only 5 cars in 5 routes and solving in spending time of courier operational activity. In saving heuristic method, first off all is to define the existing route and make matrix distance for each node. Based on the background problem about spending time of courier, the matrix distance should be converted into time from-to matrix. Calculate into saving matrix with saving formula and ranking from the highest saving score to the lowest score. The objective is to put in the line new route from the highest saving to get effective route in minimize time spending. The result is new a route design with saving time to 130 minutes faster than previous route. In the new route there are differences in each route. This route supports work hours courier to avoid overtime work time. In recommendation, company should concern to same route delivery and pick up courier responsibility by adding capacity of motorcycle to back up car driver job description. Key word: Saving Heuristic, RPX Holding Company, Vehicles Routing Problem

3 ABSTRAK Madala Widi Muchlis Tanggal Ujian Akhir: 20 Agustus 2007 Tanggal Wisuda: 27 Oktober 2007 Program Pasca Sarjana, Institut Teknologi Bandung, 2007 Pembimbing: DR. Ir. Gatot Yudoko Penelitian ini bekerjasama dengan perusahaan RPX Holding Company yang berlokasi di Jalan Cilandak, Jakarta Selatan. Latar belakang masalah dalam penelitian ini adalah tentang waktu kerja kurir yang melebihi waktu kerja normal. Permasalahan ini disebabkan karena dalam rute yang sama, kurir harus mengirim barang sekaligus mengambil barang titipan konsumen untuk dikirim. Selain itu, dengan kondisi lalu lintas di Jakarta yang tidak bisa di prediksi, perusahaan kesulitan untuk menentukan waktu kerja pasti untuk setiap kurir. Wawancara, observasi lapangan dan studi literature adalah cara untuk memperoleh semua data dari perusahaan tersebut. Studi literatur dilakukan untuk menentukan pertanyaan pertanyaan observasi yang berhubungan dengan penelitian. Selain itu, untuk menelaah lebih dalam, dilakukan wawancara dan penelitian lapangan. Untuk menentukan jenis masalah, dilakukan penelitian secara langsung dengan ikut kegiatan keseharian dari kurir, mempelajari proses kerja pengiriman barang dan selanjutnya menentukan permasalahan. Setelah mendapatkan jenis permasalahan, adalah penentuan jenis metode yang akan digunakan untuk menyelesaikan permasalahn tersebut. Metode yang digunakan adalah Vehicles Routing Problem (VRP) dan metode Saving Heuristic. Alasan digunakan metode ini karena metode ini dapat mengembangkan rute lama dengan rute baru dengan harapan ingin mendapatkan rute yang paling efisien. Tetapi dalam penelitian ini memiliki pembatasan masalah. Permasalahan yang akan dibahas hanya untuk 5 mobil dalam 5 rute dan hanya dalam penentuan waktu kerja opersional setiap kurir. Dalam metode saving heuristic, tahap awal yang harus dilakukan adalah menentukan rute yang sudah ada dan membuat matriks jarak untuk setiap node. Berdasarkan latar belakang masalah tentang waktu kerja kurir, maka setiap jarak antar node harus dirubah ke dalam matriks waktu. Setelah itu melakukan perhitungan untuk menentukan waktu saving dan diurutkan dari yang tertinggi ke nilai saving yang terendah. Tujuannya adalah untuk mempermudah menentukan rute baru dari nilai penghematan yang tertinggi untuk mendapatkan rute yang paling efektif. Hasilnya adalah terbentuknya alternatif rute baru dengan waktu penghematan sampai 136 menit lebih cepat dibandingkan dengan rute sebelumnya. Dalam rute baru ini terdapat perbedaan urutan rute untuk setiap wilayahnya. Rute ini untuk membantu menentukan waktu kerja kurir dan menghindarkan dari kelebihan jam kerja. Untuk rekomendasi, perusahaan bisa memperhatikan untuk menambah kapasitas motor untuk membantu tanggungjawab pekerjaan dari supir mobil dalam pengangkutan barang sekaligus pengiriman barang. Kata kunci: Saving Heuristic, RPX Holding Company, Vehicles Routing Problem

4 VALIDATION PAGE OPTIMIZING VEHICLES ROUTING IN RPX COMPANY WITH SAVING HEURISTIC METHOD By: MANDALA WIDI MUCHLIS ID No: Undergraduate Program School of Business and Management Institut Teknologi Bandung 2007 Validated By (DR. Ir. Gatot Yudoko)

5 PREFACE First of all, I would like to say thanks to ALLAH SWT for the blessing and the guidance so that I could finish this final assignment very well and on time. This assignment is conducted to complete the graduation requirement of Undergraduate Program School of Business Management Institute Technology of Bandung. This assignment is entitled Optimizing Vehicles Routing in RPX COMPANY with Saving Heuristics Method During the research and the conduction of this final assignment, I got a huge wonderful favor and support from everyone. Therefore, in this foreword I would be pleased to thank: 1. My parents, Mr. Muchlis Moechtar and Mrs. Nani Soemarni Muchlis for the love given during writer did this final assignment 2. My beloved brother and sister, Melanie Muchlis, Muhammad Arief Triadi and Mahardika Emas Pratiwi, for the favor given to writer 3. My lecturer, Mr. Gatot Yudoko, for his time, advices and guidance to this final assignment 4. My beloved ex-girlfriend, Nikita Karti Notowidigdo, for the support, attention and spirit given for the writer 5. My university students of SBM 2007 and partners in SBM ITB for the support and the advices I realize that there are still a lot of minuses in this assignment according to the writer s limited knowledge and experiences. I would gladly receive any critics or suggestions in order to reach the perfection of this assignment. Last, I wish that this assignment could reach the expectation. Bandung, July Mandala Widi Muchlis

6 TABLE OF CONTENTS ABSTRACT i FOREWORD ii TABLE OF CONTENTS iii LIST OF FIGURES iv LIST OF TABLES..,,. v LIST OF APPENDICES vi CHAPTER I INTRODUCTION Company Profile Company History Vision and Mission The Products Organization Structure Preface Problem Formulation Problem Background Chosen Problem Limitation of Problem Problem Solving Position Problem Owner.. 8 CHAPTER II LITERATURE STUDY Classifying Routing and Scheduling Problem Scheduling Criteria Capacity Planning Design and Effective Capacity Vehicles Routing Problem Saving Heuristic 14 CHAPTER III METHODOLOGY Approach Company Profile and Preface Literature Study Methodology Developing Observation Model and Analysis 15

7 3.1.5 Conclusion and Recommendation Observation Model Development and Scenario Input Model Processing Model.. 18 CHAPTER IV MODEL AND ANALYSIS Jakarta Map and Agent Location Time Converting Saving Calculating Designing New Route Analysis New Route Design Comparing with Existing Route Traveling Salesman Problem Analysis.. 31 CHAPTER V CONCLUSIONS and RECOMMENDATIONS Conclusions Recommendation. 33 REFERENCES APPENDIX

8 TABLE OF FIGURES Figure 1. Organization Structure of PT RPX Figure 2. Route Figure 3. Observation Step.. 16 Figure 4. Existing Routing.. 20 Figure 5. Alternative Routing.. 29 Figure 6. Alternative Routing by Combining Saving Method and TSP... 32

9 LIST OF TABLES Table 1. Matrix from-to in Distance. 21 Table 2. Average Speed Table 3. Travel Time Table 4. Saving Matrix. 24 Table 5. Rank of Saving Table 6. Total Travel Time and Total Distance of the Existing Route Table 7. Total Travel Time and Distance of the Alternative Route.. 30 Table 8. Total Travel Time and Distance of Combining Method. 32 Table 9. Schedule Car and Motorcycle s Driver 35 Table 10. Milestone. 36

10 LIST OF APPENDIX Appendix 1. Existing Route Map Appendix 2. Combination Route Map Appendix 3. Operational Process Appendix 4. Vehicles Capacity.. 43 Appendix 5. Supplies Provided.. 45 Appendix 6. Customer Automatic System Appendix 7. RPX Local Office in Indonesia. 47 Appendix 8. Configuration 47 Appendix 9. RPX GPS System. 49