A Multi-Transportation-Modes Optimization with Time and Cost Constraints of the Postal Delivery Service in Indonesia

Vita Sarasi ()
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Vita Sarasi: Department of Management and Business, Faculty of Economy, Padjadjaran University

No 200302, Working Papers in Business, Management and Finance from Department of Management and Business, Padjadjaran University

Abstract: An optimization procedure with constraints of time and cost was applied to the postal delivery service in Indonesia involving third parties of transportation modes by using Triple Algorithm and Minimum Cost Network Flow Problem methods. Although it is nevertheless the initial stage, the optimization has showed its capability to satisfy the delivery time standard and to reduce the transportation cost simultaneously. The procedure has given a large impact on the cost effectiveness of 46.8% in this study by optimizing the choices of the transportation routes and the third parties involved. Invention of the consignment flow route and the modes selection will be useful for the network design, the third parties selection, and delivery monitoring and tracking, particularly by integrating it to the Geographical Information System. This information is especially suitable for a multifaceted archipelago and wide-area country such as Indonesia.

Keywords: postal delivery network; transportation cost; delivery time; transportation modes; optimization (search for similar items in EconPapers)
JEL-codes: G0 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2003-02, Revised 2003-02
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