A multi-criteria decision making for postal item delivery optimization from an operational perspective

Pos Indonesia already has a distribution model, which includes vehicle routing and scheduling. The innovation that can compete with various logistics services is essential through improve services and exceed consumer expectations for delivery speed and accuracy. The Postal Processing Centres Bandung 40400 is responsible for deliveries; it has a specific route and number of trucks assigned to delivery in line with a specified zone system. In order to remain competitive with other providers, innovation in optimizing existing routes is required. This study aims to propose a Multi-Criteria Decision Making model with an Analytical Hierarchy Process and The Technique for Order of Preference by Similarity to Ideal Solution and Monte Carlo Simulation to optimize route path by selecting delivery centres that give the best performance based on four criteria: product express types, demand, distance, and the number of postal bags. The Multi-Criteria Decision Making method is implemented to adapt the choice of operational managers in determining the priority of delivery centres based on company policies. Analytical Hierarchy Process implements the weighted criteria and The Technique for Order of Preference by Similarity to Ideal Solution to determine the priority ranking based on the dataset. Monte Carlo then simulates the solution set. This simulation model shows the priority of distribution centres concerning current routes to assist operational managers in forecasting future delivery patterns based on available datasets. The delivery centre Cikeruh, Cikutra, Lembang, and Majalaya are the four delivery centres with the highest-ranking priority, suggesting that these four are given priority for the next delivery plans related to route, vehicle, and time constraints. A comprehensive dataset is required to optimize the model.