Optimization of Distribution Route with Vehicle Routing Problem with Transshipment Facilities (VRPTF)

VRPTF is one of many various kinds of Vehicle Routing Problem (VRP) which is still slightly discussed. As logistic is always an issue for both developed and developing country, this research aims to compare whether or not VRPTF is suitably applied to logistic distribution in Indonesia. As we know, Indonesia is one of the archipelagic countries, so distributing goods across the island requires a high cost. The purpose of this paper is giving cost comparison by using VRPTF method, Hub-and-Spoke method, and Capacitated VRP method, so countries that may experience similar case can apply this method and get the optimize route model. This study was conducted by taking case study from a company that produces a non-perishable product and generate using Open Solver and VBA program, both in Excel. This research indicates that VRPTF method is giving optimize cost than other methods.