Optimization of Distribution Route and Schedule with Vehicle Routing Problem with Time Windows (VRPTW)

High competitiveness in industrial practice has encouraged companies to do cost-saving, including logistic. One of the aspects that contribute the biggest amount is physical distribution cost. Besides, the fact that Indonesia's logistic performance index keep decreasing year by year has proven that Indonesia's logistic is not optimal yet, especially in urban areas which customer demand is centred and high. Hence, a better planning of distribution route and schedule become an important thing to execute. This research will be focused on planning Vehicle Routing Problem With Time Windows (VRPTW), which is finding the most optimum distribution route with lowest total distance yet still manage to fulfill all demand and considering the constraints of vehicle capacity and customers' time windows. By using heuristic methods which are local search and Lin Kernighan Helsgaun, the most optimum distribution route and schedule will be generated to be considered in company decision making.