Industry has a level of competition in the free market era, although the distributor level. Consumers will be satisfied with the services distributor, if the product arrived on time, right quantity and the right quality. PT. Semen Balfour has not had a good distribution planning. Distribution planning run by the company is less effective and has few weaknesses
in the distribution work, there are several problems associated with the supply (supply), demand (demand), and freight (cost). Those problems can be solved through a method of transportation. In solving the problem of transportation, starting with determining the initial solution (initial solution) followed by testing the optimization of the initial solution. In determining the initial feasible solution can be used several methods of transport ie Top Left Angle Method (North West Corner Method), Minimum Cost Method (Least Cost Method) and Approach Vogel (Vogel's Approximation Method). Optimization methods for the testing phase there are two methods that can be used to determine whether the previous stage that is optimal method Stepping Stone (The Stepping Stone Method) and the Modified Distribution Method (The Modified Distribution Method / MODI). However, in this study the authors using VAM and MODI method because this method is a method of transportation that produces the optimum solution and the best method to use than other methods because it's easier and quicker to regulate the allocation of multiple sources to multiple areas of marketing
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