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Optimized distribution of halal products using tabu search

Dwi Agustina Kurniawati (Department of Industrial Engineering, Faculty of Science and Technology, Universitas Islam Negeri Sunan Kalijaga, Yogyakarta, Indonesia)
Asfin Handoko (Department of Industrial Engineering, Faculty of Science and Technology, Universitas Islam Negeri Sunan Kalijaga, Yogyakarta, Indonesia)
Rajesh Piplani (School of Mechanical and Aerospace Engineering, Nanyang Technological University, Singapore, Singapore)
Rianna Rosdiahti (Department of Industrial Engineering, Faculty of Science and Technology, Universitas Islam Negeri Sunan Kalijaga, Yogyakarta, Indonesia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 24 February 2022

Issue publication date: 10 March 2023

407

Abstract

Purpose

This paper aims to optimize the halal product distribution by minimizing the transportation cost while ensuring halal integrity of the product. The problem is considered as a capacitated vehicle routing problem (CVRP), based on the assumption that two different types of vehicles are used for distribution: vehicles dedicated for halal product distribution and vehicles dedicated for nonhalal products distribution. The problem is modeled as an integer linear program (ILP), termed CVRP-halal and nonhalal products distribution (CVRP-HNPD). It is solved using tabu-search (TS)-based algorithm and is suitable for application to real-life sized halal product distribution.

Design/methodology/approach

Two approaches are used in solving the problem: exact approach (integer-linear program) and approximate approach (TS). First, the problem is modeled as ILP and solved using CPLEX Solver. To solve life-sized problems, a TS-based algorithm is developed and run using MATLAB.

Findings

The experiments on numerical data and life-sized instances validate the proposed model and algorithm and show that cost-minimizing routes for HNPD are developed while ensuring the halal integrity of the products.

Practical implications

The proposed model and algorithm are suitable as decision support tools for managers responsible for distribution of halal products as they facilitate the development of minimum cost distribution routes for halal and nonhalal products while maintaining the integrity of halal products. The model and algorithm provide a low transportation cost strategy at the operational level of halal products distribution while fulfilling the halal logistics requirement.

Originality/value

To the best of the author’s knowledge, this is the first study that specifically deals with the CVRP of halal products distribution by proposing CVRP-HNPD model and TS-CVRP-HNPD algorithm. The proposed model and algorithm ensure the integrity of halal products along the distribution chain, from the warehouse (distribution center) to the retailer, while achieving lowest transportation cost.

Keywords

Acknowledgements

The authors acknowledge the full financial support from Lembaga Penelitian dan Pengabdian Kepada Masyarakat (LPPM), Universitas Islam Negeri Sunan Kalijaga, Indonesia for the grant awarded for this research under scheme: Postdoctoral Research Grant Year 2019, which has made the research and presentation of this paper possible.

Citation

Kurniawati, D.A., Handoko, A., Piplani, R. and Rosdiahti, R. (2023), "Optimized distribution of halal products using tabu search", Journal of Islamic Marketing, Vol. 14 No. 4, pp. 1058-1083. https://doi.org/10.1108/JIMA-05-2020-0143

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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