Decision support system of distribution to reduce cost and optimization

Abstract

This research is a development of decision support systems for warehouse distribution centers in the region. That technical to plan distribution and inventory management of efficiency. To solve problem for network of inventory management and compare with the current system to reduce costs of distribution. Organizational success to apply the center of gravity, that to define the best distribution location with MapMagic program. The route of the cargo are improved by Heuristic method for the answer closest (nearest neighbor heuritics) to add in program will support distribution (logistics algorithim) so that to solve the transportation route system.

The result activity process of transporting found Value-Added Activities (VA) 52.52 minutes (89.47%), Non-Value-Added Activities (NVA) 1 minutes (1.7%) and Necessary but Non Value Added Activities (NNVA) 5.18 minutes (8.83%). The truck routing problem was decreased from 3,308.73 to 2,786.92 kilometers/week (25046.88 kilometers/month or 2087.24 kilometers/year). And fuel cost was decreased from 10,654.09 to 8,973.88 bath/week (6,721.21 baht/month or 80,654.52 baht/year).