Analysis of Transportation Method on Optimization of Semen Padang Distribution Cost in PT Mega Eltra Medan Branch

One of the special problems in linear programming is the transportation problem, to solve this problem the transportation method is used. Some of the problems that can be solved by the transportation method are allocating goods or services from one place (source/supply) to another place (destination/demand) optimally. PT. Mega Eltra Medan Branch is one of the businesses engaged in the goods industry. One of them, Semen Padang which is distributed to several areas of North Sumatra. In this study, transportation methods were used to determine the initial feasible solution, namely North West Corner Method (NWCM), Least Cost Method (LCM), Vogel's Approximation Method (VAM) and the optimality test method of Stepping Stone Method and Modified Distribution Method (MODI). The purpose of this study is to apply the transportation method by finding the optimal initial feasible solution and comparing the optimal test using the final solution method to obtain the minimum transportation cost. Based on the calculation of the initial feasible solution, VAM is used to test the initial feasible solution, because the value obtained is more optimum than the other two initial methods. After that, the final solution will be tested using the Stepping Stone and MODI methods in order to obtain the optimal value. So, through the optimality test obtained, each of the VAM-Stepping Stone and VAM-MODI costs is Rp409.445.000. While the costs incurred by the company amounted to R.456.600.000. So the company can save transportation costs for Semen Padang by 10.32% per year.