The Clarke and Wright Savings and Nearest Neighbor Methods

Oct 13, 2025 by vinooalluri.com 114 views

Introduction

In today's competitive business landscape, companies are constantly seeking ways to optimize their operations and reduce costs. One area where companies can make significant improvements is in their distribution routes. PT. Sinar Sosro, a leading manufacturer of soft drinks, particularly bottled tea, is no exception. With a total cost of Rp 3,540,000 per month for distribution in 2019, the company is looking for ways to streamline its logistics and improve its operational efficiency.

The Challenges of Determining Efficient Distribution Routes

Determining efficient distribution routes is a complex problem that has been faced by companies for years. In the existing system, drivers are given a list of product requests from distributors, which can lead to inefficiency and increased transportation costs. This is particularly true for companies like PT. Sinar Sosro, which have a large number of agents and distributors across the country.

The Vehicle Routing Problem (VRP) Approach

To address the challenges of determining efficient distribution routes, companies can use the Vehicle Routing Problem (VRP) approach. The VRP is a well-known problem in the field of operations research that involves finding the most efficient routes for a fleet of vehicles to visit a set of customers or locations. By using the right method, companies can plan more efficient distribution routes, thereby reducing costs and improving logistics performance.

The Clarke and Wright Savings and Nearest Neighbor Methods

In this study, two methods were used to find optimal shipping routes: the Clarke and Wright Savings method and the Nearest Neighbor method.

The Clarke and Wright Savings Method

The Clarke and Wright Savings method focuses on saving costs that can be achieved by combining two routes. By calculating the savings from the route that can be combined, this method seeks to optimize the distribution route in a more systematic way. Although this method is effective, in some cases, it can produce a longer route if not managed properly.

Case Study: PT. Sinar Sosro

In this study, the Clarke and Wright Savings method was used to determine the optimal distribution route for PT. Sinar Sosro. The results showed that the total distance produced using this method was 207.24 km, with a transportation cost of Rp 3,026,760.

The Nearest Neighbor Method

The Nearest Neighbor method works by selecting the closest location from the current position to determine the next route. This approach tends to be simpler and faster, and is able to produce more optimal routes in many situations.

Case Study: PT. Sinar Sosro

In this study, the Nearest Neighbor method was used to determine the optimal distribution route for PT. Sinar Sosro. The results showed that this method was more effective than the Clarke and Wright Savings method in terms of distance and cost efficiency. This shows that the Nearest Neighbor method is able to minimize the distance and transportation costs.

Conclusion

The application of the optimization method of distribution routes is very important for PT. Sinar Sosro to improve operational efficiency and reduce costs. From this study, it is clearly seen that the Nearest Neighbor method is more effective than the Clarke and Wright Savings method. With the right route selection, PT. Sinar Sosro can optimize the distribution process and increase customer satisfaction, which in turn has a positive impact on the company's business sustainability.

Recommendations

Based on the results of this study, the following recommendations are made:

PT. Sinar Sosro should use the Nearest Neighbor method to determine the optimal distribution route for its products.
The company should implement a more systematic approach to determining distribution routes, such as using the Clarke and Wright Savings method.
The company should invest in technology, such as GPS and route optimization software, to improve the efficiency of its distribution routes.

Future Research Directions

This study has several limitations, including the use of a small sample size and the assumption of a fixed demand for products. Future research should aim to address these limitations and explore other methods for determining optimal distribution routes.

References

Clarke, G., & Wright, J. W. (1964). Scheduling of vehicles from a central depot to a number of delivery points. Operations Research, 12(4), 568-581.
Dantzig, G. B., & Ramser, J. H. (1959). The truck dispatching problem. Management Science, 6(1), 80-91.
Toth, P., & Vigo, D. (2002). The vehicle routing problem. SIAM Monographs on Discrete Mathematics and Applications, 10.

Appendix

The appendix includes the detailed results of the study, including the calculation of the total distance and transportation cost for each method.

Introduction

Determining optimal distribution routes is a complex problem that has been faced by companies for years. In this article, we will answer some of the most frequently asked questions about determining optimal distribution routes.

Q: What is the Vehicle Routing Problem (VRP)?

A: The Vehicle Routing Problem (VRP) is a well-known problem in the field of operations research that involves finding the most efficient routes for a fleet of vehicles to visit a set of customers or locations.

Q: What are the benefits of using the VRP approach?

A: The benefits of using the VRP approach include:

Reduced transportation costs
Improved logistics performance
Increased customer satisfaction
Improved operational efficiency

Q: What are the Clarke and Wright Savings and Nearest Neighbor methods?

A: The Clarke and Wright Savings method and the Nearest Neighbor method are two methods used to determine optimal distribution routes. The Clarke and Wright Savings method focuses on saving costs that can be achieved by combining two routes, while the Nearest Neighbor method works by selecting the closest location from the current position to determine the next route.

Q: Which method is more effective, the Clarke and Wright Savings method or the Nearest Neighbor method?

A: The results of this study show that the Nearest Neighbor method is more effective than the Clarke and Wright Savings method in terms of distance and cost efficiency.

Q: What are the limitations of this study?

A: The limitations of this study include the use of a small sample size and the assumption of a fixed demand for products.

Q: What are the recommendations for PT. Sinar Sosro?

A: The recommendations for PT. Sinar Sosro include:

Using the Nearest Neighbor method to determine the optimal distribution route for its products
Implementing a more systematic approach to determining distribution routes
Investing in technology, such as GPS and route optimization software, to improve the efficiency of its distribution routes

Q: What are the future research directions?

A: The future research directions include:

Addressing the limitations of this study, such as the use of a small sample size and the assumption of a fixed demand for products
Exploring other methods for determining optimal distribution routes
Investigating the impact of different factors, such as traffic and road conditions, on the efficiency of distribution routes

Q: What are the implications of this study for other companies?

A: The implications of this study for other companies include:

The importance of using the VRP approach to determine optimal distribution routes
The benefits of using the Nearest Neighbor method or other optimization methods to improve logistics performance
The need to invest in technology and implement more systematic approaches to determining distribution routes

Conclusion

Determining optimal distribution routes is a complex problem that requires the use of advanced methods and technologies. This study has shown that the Nearest Neighbor method is more effective than the Clarke and Wright Savings method in terms of distance and cost efficiency. The recommendations for PT. Sinar Sosro and the future research directions are also discussed.