Strategy of selection of transporters and truck types using linear programming model on XYZ company: Indonesia context

Transportation contributes significantly to the overall company operating costs. Transportation cost on logistics system for delivery depends on delivery area and type of trucks. XYZ company as third party logistics (3PL) that used others transporters companies would be expensed different rental costs depend on the transporter charges. Best selection of the transporter and the type of truck could achieve the minimum point of transportation cost. This research attempted to get the minimum transportation costs, by using linear programming models. Linear programming model is decision making tools to maximize or minimize various linear inequalities relating to some situation and finding the "best" value obtainable under certain conditions.