Minimarket Location Selection Analysis Using the Optimization Model in the Click and Collect and Home Delivery Systems

• Main Authors: Faradilla, Novenda Ayu, Asih, Anna Maria Sri
• Format: Conference or Workshop Item NonPeerReviewed
• Language: English
• Published: 2021
• Subjects: Industrial Engineering
• Online Access: https://repository.ugm.ac.id/277137/1/Novenda%20Ayu%20Faradilla_Minimarket%20Location%20Selection%20Analysis%20Using%20the%20Optimization%20Model%20in%20the%20Click%20and%20Collect%20and%20Home%20Delivery%20Systems.pdf; https://repository.ugm.ac.id/277137/
• Institution: Universitas Gadjah Mada

Industrial revolution 4.0 brought many changes to human behavior. Humans tend to depend on technology and the internet, including shopping. The internet is changing the way consumers interact with retailers and stores for goods. Collaboration between brick and mortar and online retailers will shape the market and make retailers meet demand with something relevant and new. A home delivery service is one solution to meet customers’ needs who want to transact online. Recently, there is a click and collect service method where consumers can order products online and can pick up the product at a chosen location. This study aims to develop and create optimization models for site selection that serves click and collect and home delivery in Indonesia. The model is implemented in the case of minimarkets in the northern city of Yogyakarta. The method used in this research’s optimization model is facility location and capacity allocation to find the right facilities and the appropriate capacity allocation to get the optimal minimization results. The results of this paper are to open two warehouses and five stores that will serve click and collect and/or home delivery. In this paper, demand and minimum criteria for the nearby store (Z) are sensitive variables in model optimization.