THE DEVELOPMENT OF DISTRIBUTION CENTER LOCATION MODEL IN INDONESIA

• Main Author: NOLVARISTA BT (NIM: 23409023); Pembimbing : Prof. Dr. Ir. Senator Nur Bahagia , SIFRA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17225
• Institution: Institut Teknologi Bandung

Indonesia is an archipelago country with a vast territory. These factors make logistics has an important role to distribute commodities. The report of Logistics Performance Index (LPI) from The World Bank, shows that the logistics performance of Indonesia has decreased. In 2007, Indonesia’s logistics performance was at rank 43 from 150 countries, but in 2009, the ranking of <br /> <br /> <br /> Indonesia only at number 75 from 155 countries. The decreasing of this ranking means decreasing of logistics performance of Indonesia. Uneven distribution causes the scarcity of commodities in some provinces while too long distribution channel causes disparity in price between West Indonesia and East Indonesia. The commodites studied in this research are rice, sugar, cooking oil, flour, and milk powder. Those commodities are part of the nine basic (staple food) as specified in the decision of the Minister of Industry. The aim of this research is to solve problem in commodities distribution by integrated distribution and build warehouses for <br /> <br /> <br /> distribution center to shorten the distribution channel. <br /> <br /> <br /> The problem in this research is solved by integrated distribution network and build warehouse regions as the center distribution or DC warehouses that will be made as temporary storages before the commodities are distributed to each storage in every province. The developing model is done by determine which province will be located as DC warehouses to minimize total <br /> <br /> <br /> logistics costs as objetive function. This research uses the model of Lee dan Kwon as reference model and integrated logistics with P model of probabilistic inventory. The results show that the location for DC warehouses are in Central Java and South Sulawesi. From the results also known that the model developed is better than the existing. It can be seen from the total logistics costs. The model developed has about 30% less than the existing. Based on the total logistics costs, known that the higest component in logistics costs is <br /> <br /> <br /> transportation costs. It’s about 69% from the total logistics costs. It’s because the transportation costs is expensive which can achieve about 30% from the total production costs. Integrated distribution can reduce cost in transportation costs and make even distribution, so that can reduce the disparity between provinces.