DETERMINATION OF TRANSPORT ROUTES USING THE SAVING MATRIX METHOD AT PT XYZ

Anisa Natasari, Hilal Ali Azzim, Fahrul Arifin and Muchammad Fauzi Widyatama University Bandung E-mail: anisa.natasari@widyatama.ac.id, hilal.ali@widyatama.ac.id, fahrul.arifin@widyatama.ac.id and muchammad.fauzi@widyatama.ac.id ARTICLE INFO ABSTRACT Received: July, 24th 2021 Revised: August, 16th 2021 Approved: August, 18th 2021 PT XYZ is a company engaged in manufacturing that produces electronic components and installation services for these components. In this study, the company will send components and help install them in nine locations in Sumatra. The analysis of determining distribution routes uses the saving matrix method. The results of the analysis using the saving matrix method show that the original distribution distance of 9926 kilometers can be reduced to 2937.7 kilometers, which means that the distance can be shortened and more efficient by 70% or around 6988.3 kilometers. The original cost was Rp. 54,386 .000 down to Rp. 16,716,000 Thus there is a distribution channel savings of Rp. 37,670,000 or about 69.2%.


INTRODUCTION
Consumer demands for quality, product, price, better service, delivery accuracy (Adianto, 2018) and product availability on the market are currently getting higher (Santoso, Mustaniroh, & Pranowo, 2018) and proper distribution is needed (Karundeng, Mandey, & Sumarauw, 2018). Effectiveness in choosing the right destination route will reduce waste in terms of cost, time and power (Trisna, Fatimah, & Nasution, 2019).
Product allocation and determining the route of delivery of goods are important in an industry (Ardhyani, 2017), both small and large scale industries (Musita, 2018). Errors in determining distribution channels (Sibarani, 2013) and delays in product delivery can hinder the distribution of products from producers to consumers (Karundeng et al., 2018), which can result in reducing company profits and can also have the potential for losses to the company (Marchelia, 2014).
In an effort to minimize product distribution transportation costs (Huda, 2018), companies must pay attention to the existing transportation network system (Trisna et al., 2019). The transportation network system can be seen in terms of effectiveness (Wulandari & Sudiana, 2018), in terms of safety, high accessibility, integrated, sufficient capacity, orderly, smooth, fast, easy to reach, timely, comfortable, affordable, orderly, safe (Razi & SUMBERDAYA, 2014), and low in pollution as well as in terms of efficiency in transportation (Sitorus, Hidayat, & Prasetya, 2014). the meaning of having a high utility in a unified transportation system network (Amin, Hamidi, & Ekwarso, 2017).
To anticipate this problem, we need a method that can provide minimal product distribution costs (Putra & Handayani, 2018). The Savings Matrix method is a method used to determine product distribution routes (Supriyadi, Mawardi, & Nalhadi, 2017) to marketing areas by determining the distribution routes that must be passed (Bimantara, 2018) and the number of vehicles based on vehicle capacity in order (Muziansyah, 2015) to obtain the shortest route and minimal transportation costs (Huda, 2018). The Savings Matrix method is also one of the techniques (Ikfan & Masudin, 2014) used to schedule a limited number of vehicles from facilities that have a maximum capacity (Suparjo, 2017).
By using the Savings Matrix Method, it is hoped that it can help overcome the problems above, so that the company is able to plan well for each installation item that will be sent.

RESEARCH METHODS
The Savings Matrix method is a method used to determine product distribution routes to marketing areas by determining the distribution routes that must be passed and the number of vehicles based on vehicle capacity in order to obtain the shortest route and minimal transportation costs. The Savings Matrix method is also one of the techniques used to schedule a limited number of vehicles from facilities that have a maximum capacity. By using the Savings Matrix method, it is expected to be able to answer research problems, and the company is able to make plans for each installation that will be sent. The data used in this study are as follows: 1. Primary data is data that is specifically taken for the sole purpose of research, which is obtained from the results of interviews. 2. Secondary Data is data obtained from references originating from sources such as companies, namely PT XYZ Project Cost Data. Table 1 is data on consumer demand for product shipments and installations in January 2021.

B. Initial Route
The company divides the distribution and installation into 2 groups due to limited material for that month. Each group is able to serve a maximum of 8 sites in 9 different locations. The company's initial routes amounted to 9 routes with a total distance generated on this initial route of 9926 kilometers. The distance on the initial route is considered too long and must be trimmed so as not to incur transportation costs and long delivery times.

C. Installation Distance Data
Data on the distance between the company and the installation location and the distance between locations are shown in Table 2 and Table 3.

D. Initial Transportation Fee
Initial transportation costs are taken based on company data. Initial transportation costs are listed in Table 4.

E. Identify the Savings Matrix
Saving Matrix is obtained by combining two or more location routes simultaneously. The merger is adjusted to the number of consumer requests and the number of combinations is not allowed to exceed the capacity of the transportation means. The table of the savings matrix can be seen in Table 5.

F. Installation Request Allocation
Allocation of consumer demand can be started by looking at the value of the greatest savings. The allocation of each different location can be combined up to the limit of the carrying capacity. The results of the merging of routes can be explained in Table 6. The number of routes originally was 9. After combining, the number of routes became 2. The total load transported was still below the maximum capacity of the transportation equipment, which was 8 pieces. Thus, both routes can be used.

G. Routing
Determination of the product distribution route starts from the process of identifying the distance matrix. This process requires data on the distance between the warehouse to each location and the distance between locations. The next step is to identify the savings matrix. (Suparjo, 2017) Saving matrix is realized by combining 6 or more locations into one route.
The company still implements product delivery using one line, namely from warehouse-location1 -warehouse and warehouse -location 2-warehouse and so on. These conditions can make the product distribution process take longer, longer distances, and more distribution costs. Therefore, a route change is needed that can combine several locations into one route.
Merging these routes can save the number of routes, distance, and distribution costs. By referring to the savings matrix table, the allocation process can be carried out. The allocation of each location into one route can be combined up to the capacity limit of the company's transportation equipment (Suparjo, 2017). The merger starts with the largest savings value. Starting from the saving value of 1611 which is the savings from combining location C and location I. The number of installation requests at both locations is 2 sites while the maximum total is 8 sites. The total is still below the maximum capacity limit of 8 sites. Thus, the merger is feasible, location C and location I are merged into route 1, and so on. Next is to sort the locations in a predefined route.

H. Route Comparison and Initial Transportation Costs
The comparison of product distribution routes before the saving matrix method is applied and after is very clear. Initially, the company had 9 routes for delivery and installation at a site. The total distance traveled by the company during the process of shipping goods and installation at 9 locations is 9926 kilometers. This makes the cost to the company is also not small, namely Rp. 54,386,000. After applying the saving matrix method, the number of routes, total distance, and product distribution costs in the company experienced a significant decrease with the assumption that labor costs and transportation costs were the highest from the initial 9 routes. The company can reduce the mileage by 6988.3 kilometers or about 70%. Product distribution costs also experienced savings of IDR 37,670,000 or 69.2%.