The Application of Improved Nearest Neighbor Heuristic to Solve Vehicle Routing Problem for Rice Distribution System in Bandung

Abstract

Caringin Central Market is one of the largest wholesale markets in Bandung. This market
was built by the private sector and received full support from the City Government. This
market serves traditional markets in the city of Bandung, including the rice commodity. The
transportation system currently used by Caringin Central Market to distribute rice to
traditional markets is direct delivery. Direct delivery causes high transportation costs. The
difference in transportation costs between direct delivery and shared delivery is up to 19.5%.
The method used in this study is a heuristic with the Improved Nearest Neighbor Heuristic
(INNH) to determine the most effective Vehicle Routing Problem (VRP) solving. The
performance measure of the model is the transportation cost and then the model is solved
using the Matlab. The results of this study are the optimal vehicle route by comparing the
results of the Lingo solver in the previous study with the results of the Matlab in this study.
The transportation costs for direct delivery are 41,069,529 IDR the transportation costs
resulting from the Lingo solver are 33,988,890 IDR, and the resulting transportation costs
from the Matlab are 34,038,039 IDR. Transportation cost efficiency obtained from this study
is 0.15%