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A Model to Choose Hub and Route Determination

Kevin Kevin, Y. M. Kinley Aritonang, Julius Dharma Lesmono


Abstract


Determining a transport hub is a strategic decision to build a good distribution flow. In this paper, We suggested a model for choosing hub locations as sources for companies. In previous studies, The determination of hub locations with a vehicle routing problem is not integrated. Therefore, This study built a model to assess the position of the hubs by considering the budget. The business should have a decision on vehicle routing with hubs to reduce total transport costs. In addition, the method of distribution of goods for hubs and non-hubs with third-party logistics was determined by the use of a vehicle routing problem. The optimal weight obtained through the analysis of sensitivity. In the sensitivity analysis, This study found that the best choice in this study was to use a weight of 0.9–1.0. This provides the lowest total cost of transport.

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DOI: https://doi.org/10.22219/JTIUMM.Vol20.No2.182-190 | Abstract views : 181 | PDF views : 181 |

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Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.