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IJSTR >> Volume 8 - Issue 8, August 2019 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



Use Of The Saving Matrix Method As An Alternative For Distribution Cost Efficiency: An Empirical Study On Log Timber Companies In Central Java

[Full Text]

 

AUTHOR(S)

Suparjo

 

KEYWORDS

Saving Matrix Methods, Efficiency, Distribution Costs

 

ABSTRACT

The purpose of this study is to obtain the most appropriate and optimal product delivery route that can minimize distribution costs, and to determine the magnitude of distribution cost savings. The population in this study is data log companies in Central Java, and the sample of this study is data from 10 log transport companies in 10 major cities in Central Java. Analysis of determining the distribution route using the Saving Matrix method Forecasting results of the smallest MAPE, MAD, and MSE values of 0.317, 0.125, and 0.028. The results of analysis using the Saving Matrix method show the number of distribution routes can be reduced by 50%, from 20 routes to 10 routes. The original distance of 3890 kilometers can be reduced to 2238 kilometers, which means that the distance can be shortened / saved by 42.47% or around 1652 kilometers. A decrease in route resulted in lower product distribution costs and a distribution channel cost savings of 44.07%.

 

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