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Comparing Transportation Costs Between Processors And Buyers In CPO Tender Using Genetic Algorithm And Operations Research Tools
Putra, Rizky Betadi
Article from Proceeding
Proceeding The 7th International Seminar on Industrial Engineering and Management (7th ISIEM) di Bali, March 11th – 13th, 2014
page OR 1-6.
Crude Palm Oil (CPO)
Paper 01 Syarif Hidayat UAI.pdf
Crude Palm Oil (CPO) business has become the most important agroindustrial commodity of Indonesia, while as of 2006, Indonesia was the largest producer and exporter of CPO with 20.9 million tons. This business involves many players in a long supply chain starting from farmers and ending with the buyers, both local and abroad. One of the major costs in supply chain is transportation cost. This research tried to apply and compare Genetic Algorithm and Operations Research tools in minimizing the supply chain transportation costs between 10 CPO processors (PTPNs) and 9 CPO buyers (private companies). The better method that obtain optimum solution was Operations Research Transportation Model using North-West Corner Method with a total cost of Rp 7,047,935,664 compared to Rp 9,563,378,906 for the GA approach
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