Determination of the Optimal Distribution Center Location with Gravity Location Model Agus Sanjaya(*), Anita Christine Sembiring, Willyanto
Department of Industrial Engineering, Universitas Prima Indonesia, Jl. Sekip Simp. Sikambing, Medan, Indonesia
Abstract
Strategic distribution locations and optimal distribution routes are important concerns of a company to minimize distribution costs. The shorter the distribution route, the lower the cost of distribution. Animal feed companies have difficulty in reducing distribution costs. Therefore, research is conducted to determine the exact location of the distribution center so that the distribution route is optimal. The purpose of this research is to determine the optimal distribution center location to reduce distribution costs. In determining the proposed distribution center location, Gravity Location Model is used. The research results are the new coordinates as the proposed distribution center location, namely (98.888504; 3.419406) and the total distribution cost of initial distribution center location is Rp 7.135.828, while the total distribution cost of proposed distribution center location is Rp.6.965.143. The results obtained show that the total distribution costs can be reduced by 2.39% per day.
Keywords: Route optimization, Saving matrix, VRP, Gravity location model
