Development of delivery consolidation procedures at courier service companies using Monte Carlo simulation

Dody Hartanto*, Arsyad Bunyannudin

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review


Courier service company offers several delivery time schemes. The longer the delivery time, the cheaper the tariff offered and vice versa. Longer delivery time scheme gives courier service company greater flexibility to consolidate delivery of product with different delivery time scheme so that utilization of vehicles and the number vehicle needed can be minimized. Therefore, it is very important for company to have good consolidation procedure to reduce cost of delivery. In this study, a procedure was developed to improve existing consolidation procedures. The main difficulty in developing procedures is due to uncertainty in the volume of goods and the scheme of the delivery time chosen by consumers both at origin and destination. Monte Carlo simulation is used to estimate improvements in utilization and the number of vehicle needed by using a new consolidation procedure. The simulation result shows that the proposed consolidation procedure able to increase utilization of the vehicle and reduce the number of vehicle needed. In the case of delivery goods on Jakarta-Bandung route, the proposed procedure able to reduce the number of vehicle needed by 13.4% and increase its utilization by 13%.

Original languageEnglish
Article number012114
JournalIOP Conference Series: Materials Science and Engineering
Issue number1
Publication statusPublished - 1 May 2019
Externally publishedYes
Event1st Tarumanagara International Conference on the Applications of Technology and Engineering, TICATE 2018 - Jakarta, Indonesia
Duration: 22 Nov 201823 Nov 2018


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