Development of a New Connection Material Distribution Model Based on Integrated Transportation and Storage Cost at PT PLN (Persero)
Keywords:
Two-echelon distribution, material allocation, delivery frequency, transportation cost, storage costAbstract
PT PLN (Persero), the national electricity service provider in Indonesia, employs a tiered distribution system to support its New Connection program, involving the movement of materials from suppliers to UP3 (Unit Pelaksana Pelayanan Pelanggan), and subsequently to ULP (Unit Pelayanan Pelanggan). This study proposes a mathematical model utilizing binary and integer decision variables to optimize material allocation and delivery frequency, with the objective of minimizing both transportation and storage costs. A numerical experiment is conducted to evaluate the effectiveness of the model under actual demand conditions. The results demonstrate that the model can generate an efficient and cost-effective material distribution plan.
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