GIS-BASED MULTI-CRITERIA DECISION-MAKING APPROACH FOR SITE SELECTION OF CROSS-DOCKING FACILITY IN A RETAIL SUPPLY CHAIN

• Main Author: Meyrawati, Zusnita
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/44058
• Institution: Institut Teknologi Bandung

Traffic congestion is a critical issue in nearly all over the globe. To date, the bottleneck has gotten into a new chapter. Not only occurs in the collector and arterial road segments, but it has also penetrated to the highways, which become one of the base aspects in respect to mobility management. The construction of a toll road is intended to increase the mobility and accessibility of people and goods that will affect regional development and economic improvement. However, with the above phenomenon, it cannot be avoided that the traffic condition on the highways has become increasingly alarming as has happened in several metropolitan areas. Besides providing a direct impact on road users, congestion on the toll roads also affects retail franchise companies which play an essential role in distributing daily needs to the communities. Therefore, companies have to spend more costs due to waste both in terms of transport as well as productivity. A direct-shipment is claimed to bring in lower transport cost if only the suppliers and customers are located in the same geographical terrain, yet, for long-distance suppliers-customers location, they may gain cost saving from the cross-docking implementation. However, for a short-distance origin and destination, increasing demand for products has caused retail companies to allocate more trucks, which eventually escalate the number of freight vehicles going through the toll roads. With a large number of freight trucks operated in their supply chain, it has supplemented significantly to congestion on the highways. Thus, a cross-docking idea, which is one of the distribution strategies, is proposed in this research. A challenging issue in a cross-docking system for long-term planning involves the decision of facility location. The development of a cross-docking facility for a retail company is expected to make the performance, especially products shipment to the outlets, run more effective and efficient. This research will focus on providing aii comprehensive site selection framework for the cross-docking facility within a city territory from multiple criteria as well as multiple stakeholders. Firstly, eight criteria for the site selection are identified, i.e. zoning, flood-prone, closeness to toll booth, road accessibility, outlet proximity, population size, land price, and transport cost. Meanwhile, criteria weights are derived from pairwise comparison using Row Geometric Mean Method (RGMM). It involves 18 experts coming from three distinct dimensions, namely academic, business, and government. Exploiting the criteria performance and consensus criteria weights, suitability analysis is carried out in ArcGIS. Specifically, it exerts minimization weighted sum method on raster-based map layers. This analysis generates 234 suitable locations for establishing cross-docking facility. Explore more deeply to the preferred locations which is in the rank 1; it unfolds that the suitability is principally rendered by the flood-free, transport cost, area zonation, outlet proximity, road accessibility, and land price factors. Meanwhile, the closeness to toll booth is mediocre. Regrettably, these areas cannot meet the criterion of the greatest population size. Hereinafter, a further analysis is performed to evaluate the proposed locations whether they are robust to weights changes that might occur or not. By superimposing the suitability surface to three new layers from different perspectives, which their weights also calculated using RGMM, it affirms that 57.27% sites could maintain their best rank. It implies that 134 locations are robust to weights changes. In addition, integrated uncertainty and sensitivity analysis proves that the chosen locations pose a low uncertainty and a tiny percentage of output variance coming from independent inputs. Then, the opted sites are worth to propose to be the cross-docking facility.