Distribution network is one of the supply chain management aspects that need to be considered to minimize the total cost. One of the function of Perum Bulog sub division Malang is to distribute rice for poor people in Kota Malang, Kota Batu, and Kabupaten Malang. Every year, they need to spend distribution cost that fluctuated and has increased trend. It causes unstable RASKIN distribution and poor achievement of the target. Least cost method as one of the transportation methods can be applied for allocating resources to certain destination with lowest cost. Nowadays, sub division Malang has 10 warehouses that need to distribute into 472 kelurahan. Furthermore, for distribution optimalization test, MODI method (modified distribution) is used. From the research, comparing to previous distribution cost, it can be seen that distribution cost for Kota Malang, Kota Batu, Kabupaten Malang 1, Kabupaten Malang 2, and Kabupaten Malang 3 reduce up to 15.97%, 11.2%, 17.45%, 13.89%, and 13.5% respectively.
Keywords: Supply chain management, distribution network, transportation method, least cost method
var _paq = _paq || ;
var d=document, g=d.createElement(‘script’), s=d.getElementsByTagName(‘script’);