The study analysed salesmen itinerary of a confectionery supplier in Indonesia. Channel management and robust product distribution is important element for confectionery business, since growth heavily depends on healthy product distribution. To support its product distribution, optimizing its salesmen itinerary plays an important role in the firms sales operation. The study was limited to optimize salesmen schedule for its wholesalers outlet type, since it contributed to 78% of its revenue. The analyses were done using cluster first-route second approach. For clustering it used agglomerative hierarchical clustering (AHC) method. For routing within each cluster, it tested three algorithms, i.e. Clarke-Wright, Weighted-Serving Time-Visual approach, and ready-make application using Large Neighborhood Search (LNS) algorithm. The result showed that AHC-Weighted-Serving-Time-Visual algorithm was as good as AHC-Clarke-Wright with 2.1% cheaper variable cost. The algorithm, although stay-away from mathematical approach, is practical and easier to be understood. Solution using ready-make software gave the best solution, but total cost difference is insignificant.

Cluster first-route second, Vehicle Routing Problem (VRP), Agglomerative Hierarchical Clustering (AHC), Clarke-Wright, Weighted-Serving Time-Visual approach

• Ir. Elia Oey M.Eng. M.Sc., CSCP.

• Alexander Batara Marpaung, S.Sos., M.M.

• Muhammad Idham Sofyan, S.E., M.M.