Afif Zuhri Muhammad Khodri Harahap1 and Mohd Kamarul Irwan Abdul Rahim This email address is being protected from spambots. You need JavaScript enabled to view it.1

1School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah, Malaysia


Received: September 14, 2021
Accepted: December 28, 2021
Publication Date: January 28, 2022

 Copyright The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.

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This paper constructs the problem of dealing inventory and the transportation in the supply chain in the agriculture industry, also to investigate the capabilities of the distribution process of perishable products (vegetables) from the distribution centre (DC) to a set of customers to minimize the total operational cost. This research proposed an optimisation model to present the actual problem that happened in a real-life situation. The simulation of the transportation problem was developed using an algebraic modelling language which is called a mathematical programming language (AMPL) to determine an optimal solution. Thus, by setting the delivery routes for DC, based on the number of products that have been set for each customer, it helps to find an optimal inventory routing problem (IRP). As a result, an optimization model developed, it is predicted that agriculture firms can achieve an optimal solution by reducing their operational cost, especially on the inventory and transportation cost.

Keywords: Supply Chain Optimization, Agriculture, Inventory Routing Problem, Operations Research, Sustainability


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