Integration Model of Saving Matrix and Nearest Neighbor Methods for Optimizing Distribution of Production Results of Bawean Gresik SMEs – East Java, Indonesia

Resumen

Since 2018, the Gresik Regency Government has made serious efforts to facilitate various businesses for the Bawean community, including providing capital assistance, equipment, training, and marketing support. According to 2022 data from the Gresik Regency Government, there are 52 small and seven medium-sized SMEs in Bawean. This UKM can absorb approximately 620 non-formal workers, which is essential for empowering the Bawean community. The problem in this research is that transportation costs for delivering SME products remain too high because they are not optimized for factors such as distance, transportation capacity, and time, and more than 30-35% of sales proceeds are used to finance distribution. The method used to solve this problem is to integrate the saving matrix and nearest-neighbor methods, thereby achieving distance, time, and cost savings while considering existing constraints to increase the income of Bawean SMEs. After designing the distribution route using the nearest-neighbor method, delivery costs are calculated based on the resulting route. By using the selected proposed method, a distribution cost of Rp. 93,696,850 from the original Rp. 158,400,000 and a total distance traveled of 13,448.9 km from the original 24,303.6 km. By using the nearest-neighbor method, companies can save on the distribution costs of Rp. 64,703,150, or 40.85% less than the existing distribution costs, and saves 10,854.7 km in distribution mileage, or 44.66% shorter than the total existing mileage.