DEVELOPMENT FOR PT PQRI DISTRIBUTION CHANNEL FOR JAVA AND BALI EXPANSION

• Main Author: HELMI (NIM: 29109335), YURSYOF
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19754
• Institution: Institut Teknologi Bandung

Lack of adequate sanitation contaminates water sources worldwide and is one of <br /> <br /> <br /> <br /> <br /> the most significant forms of water pollution, worldwide, 2.5 billion people live without <br /> <br /> <br /> <br /> <br /> improved sanitation. Over 70% of these people who lack sanitation, or 1.8 billion people, <br /> <br /> <br /> <br /> <br /> live in Asia. PT. PQRI as one of the leading fast moving consumer goods company <br /> <br /> <br /> <br /> <br /> captivated that opportunity to launch a purifier product in 2010, in order to decrease water <br /> <br /> <br /> <br /> <br /> pollution problem and earn revenue for the company at the same time. <br /> <br /> <br /> <br /> <br /> At the first year, the purifier product only available in Jakarta, Bogor, Tangerang, <br /> <br /> <br /> <br /> <br /> Bekasi and Bandung, according to sales record concludes that the product has been well <br /> <br /> <br /> <br /> <br /> accepted by the market. For that reason PT.PQRI would like to expanse their distribution <br /> <br /> <br /> <br /> <br /> channel to whole major cities in Java and Bali includes the secondary cities. PT. PQRI <br /> <br /> <br /> <br /> <br /> now faces a problem related to distribute the product into their expansion plan cities. <br /> <br /> <br /> <br /> <br /> Commonly there are two methods in channel distribution; Hub and Spoke System <br /> <br /> <br /> <br /> <br /> (HSS) and Point to Point method (P2P). This research would compare those methods in <br /> <br /> <br /> <br /> <br /> order to find the lowest cost in distribution. HSS methods calculated by using a program <br /> <br /> <br /> <br /> <br /> to make the calculation faster and more accurate, in this case Genetic Algorithm would be <br /> <br /> <br /> <br /> <br /> used. While for P2P methods Circular City model by Salop (1979) would be involved to <br /> <br /> <br /> <br /> <br /> achieve another perspective and calculated manually. <br /> <br /> <br /> <br /> <br /> This research would give a business solution for PT. PQRI to choose the right <br /> <br /> <br /> <br /> <br /> method of distribution in order to successful the expansion plan with optimum total cost <br /> <br /> <br /> <br /> <br /> of distribution channel. P2P methods calculation would be IDR 8,601,250,000 for the <br /> <br /> <br /> <br /> <br /> total cost, while for HSS the amount of the total cost would be IDR 8,145,750,000. That <br /> <br /> <br /> <br /> <br /> amount for the HSS, yielded by the most optimum number and hub location which is 10 <br /> <br /> <br /> <br /> <br /> hubs. In the end of this research, action plan was proposed to implement the solution. It <br /> <br /> <br /> <br /> <br /> includes warehouse size number of warehouse and warehouses locations.