Tabu Search to Define Best Routes in Canvassing Distribution System: A Case Study

A process of distribution should be managed attentively in order to achieve a high growth and profitable output. It is necessary for the company to design a route arranging and scheduling to meet the company's revenue target. The policy studied in this paper in a PT Andrawina Company, Yogyakarta, Indonesia, is canvassing strategy for determining the best route in terms of combining length of distance as well as revenue gains. This study presents the application of Tabu Search (TS) to define the best routes for the company. The method used in this paper covered the features of initial solution by Greedy approach, nodes interchange as a selection of move, candidate lists strategy and aspiration criteria. According to the result of TS, the available routes could be modified into 5 daily and a buffer day for the after admission of the distribution. In addition, the best routes generated by TS did outweigh both over the nearest customers and potential customers (retailers).