| dc.description.abstract | Distribution is the activity of moving products from producers to consumers. If the distribution of goods is not properly regulated from an economic perspective, transportation costs can be very expensive. Bulog Sub Drive Medan is a state-owned company that regulates logistics subsidies in the North Sumatra region. Bulog Subdrive Medan receives rice sent from producers and then stored in several warehouses in Medan, then allocated to several warehouses before finally being processed to be handed over to consumers. Distributing rice from the source warehouse in Medan to the destination warehouse certainly requires costs, so a strategy is needed to determine the right distribution flow and allocate the distributed rice according to the demand for the destination warehouse. The distribution of rice from the source warehouse to the destination warehouse in the area is indicated to be not yet effective and efficient in terms of the distance traveled which is not minimal plus the capacity of the warehouse is different, so allocation is needed to provide the most optimal distribution costs. The solution to this problem was carried out by designing a new distribution route using the Russell's approximation method, improved exponential approach and modified distribution which were used as optimization. Based on the research results, the Russell's approximation method obtained a reduction in distance of 1,082 km with a reduction in costs of IDR 10,933,739, then optimization using the MODI method resulted in a reduction in distance to 4,098 km from the initial distance and a reduction in costs of IDR 11,766,026. The Improved Exponential Approach method also experienced a decrease, namely 2,516 km. Distribution costs also decreased by IDR 11,610,008. The optimization method using MODI using the Improved Exponential Approach method as the initial solution gives the same results, this is because the route using the Improved Exponential Approach method is already optimal. | en_US |
