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Article
Publication date: 24 February 2022

Dwi Agustina Kurniawati, Asfin Handoko, Rajesh Piplani and Rianna Rosdiahti

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…

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.

Details

Journal of Islamic Marketing, vol. 14 no. 4
Type: Research Article
ISSN: 1759-0833

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