Optimization of Coal Distribution System to Minimize Export Shipment Delays

Coal distribution is crucial in Indonesia’s mining industry. Due to the country’s complex archipelagic geography, coal distribution has become a challenge for the mining industry. As one of the coal mining companies, XYZ company, which is located in South Sumatera, Indonesia, has experienced export shipment delays due to the reliance on transportation modes in the area. Therefore, we developed a coal distribution system which considers multimode transportation options using mixed integer linear programming to minimize delays and transportation cost. Based on the results, the distribution delays were reduced, as well as the transportation cost related to penalty of the delays.