Solving the Two Echelon Vehicle Routing Problem Using Simulated Annealing Algorithm Considering Drop Box Facilities and Emission Cost: A Case Study of Reverse Logistics Application in Indonesia
Marco Reinaldi,
Anak Agung Ngurah Perwira Redi,
Dio Fawwaz Prakoso,
Arrie Wicaksono Widodo,
Mochammad Rizal Wibisono,
Agus Supranartha,
Rahmad Inca Liperda,
Reny Nadlifatin,
Yogi Tri Prasetyo,
Sekar Sakti
Affiliations
Marco Reinaldi
Industrial Engineering Department, Bina Nusantara University, Jakarta 11480, Indonesia
Anak Agung Ngurah Perwira Redi
Industrial Engineering Department, Bina Nusantara University, Jakarta 11480, Indonesia
Dio Fawwaz Prakoso
Industrial Engineering Department, Bina Nusantara University, Jakarta 11480, Indonesia
Arrie Wicaksono Widodo
Industrial Engineering Department, Bina Nusantara University, Jakarta 11480, Indonesia
Mochammad Rizal Wibisono
Industrial Engineering Department, Bina Nusantara University, Jakarta 11480, Indonesia
Agus Supranartha
Department of Electrical Engineering, Universitas Pendidikan Nasional, Kota Denpasar 80225, Indonesia
Rahmad Inca Liperda
Department of Logistics Engineering, Universitas Pertamina, Jakarta 12220, Indonesia
Reny Nadlifatin
Department of Information System, Institut Teknologi Sepuluh Nopember, Kampus ITS Sukolilo, Surabaya 60111, Indonesia
Yogi Tri Prasetyo
School of Industrial Engineering and Engineering Management, Mapúa University, 658 Muralla St., Intramuros, Manila 1002, Philippines
Sekar Sakti
Department of Mechanical and Industrial Engineering, Universitas Gadjah Mada (UGM), Yogyakarta 55122, Indonesia
A two echelon distribution system is often used to solve logistics problems. This study considers a two-echelon distribution system in reverse logistics context with the use of drop box facility as an intermediary facility. An optimization model of integer linear programming is proposed, representing a two-echelon vehicle routing problem with a drop box facility (2EVRP-DF). The aim is to find the minimum total costs consisting of vehicle transportation costs and the costs to compensate customers who have to travel to access these intermediary facilities. The results are then compared to those of common practice in reverse logistics. In common practice, customers are assumed to go directly to the depot to drop their goods. In addition, this study analyzes the environmental impact by adding a component of carbon emissions emitted by the vehicles. A set of comprehensive computational experiments is conducted. The results indicate that the 2EVRP-DF model can provide optimal costs and lower carbon emissions than the common practice.