INITIAL FISIBLE SOLUTIONS USING IMPROVED EXTREMUM DIFFERENCE METHOD IN TRANSPORTATION PROBLEMS WITH MODI AS AN OPTIMUM METHOD (Case Study at PT. Jasa Prima Logistik Bulog, Central Java)

Abstract

Transportation problems are a special problem of linear programs that are used to solve problems related to the distribution of an item, namely to minimize shipping costs, mileage and so on, so as to maximize the profits obtained. Transportation problems produce initial feasible solutions and optimal solutions. An initial feasible solution can be solved using the Improved Extremum Difference Method. In some balanced and unbalanced transportation problems the solution provided by this method is better than the VAM method. The optimal solution can be solved using the MODI (Modified Distribution) method. In the example case, the calculation using the Improved Extremum Difference and MODI Methods experienced a savings in shipping costs incurred by PT. Indofood Fritolay Makmur, Tbk amounted to 18.42% and profits obtained by PT. Jasa Prima Logistik Bulog Central Java is 3.86%. Keyword : Improved Extremum Difference Method, VAM Method, MODI Method, Initial Feasible Solution, Optimal Solution, Transportation Problem