The Effectiveness of the Clarke & Wright Savings Algorithm in Determining Logistics Distribution Routes (case study PT.XYZ)

A good logistics system is one factor that affects the smooth running of company activities. Currently, transportation costs account for about two-thirds total costs, so to increase efficiency, companies try maximize use equipment and personnel by determining optimal distribution route. Route optimization can be done using Vehicle Routing Problem Clarke- Wright Method. PT. XYZ a engaged in maintaining ATM machines (Automated Teller Machines). The form this activity installing air conditioners, TVs repairing machines. This faces problems section, where installation target often not achieved from specified target. because distance point another coupled with congestion level big cities, causes pay large operational costs. Therefore, route needed save time study uses Clarke Savings Algorithm solve faced companies. results showed after Algorithm, shipping were reduced saving 97.9 Km