Abstract

Distribution of goods is one of the activities in the supply chain management network design. That activities aims to ensure products are delivered on time with minimal cost. In distribution activities the placement of supply sources with the location of the facilities has an important role to ensure that goods can be delivered properly to consumers. The distance between the source of supply and the location of the facility which is relatively far causes transportations costs so swell. PT. X is the companies that implements a supply chain network to meet the goods needs of each branch office. The distance between branch location and the difference in the need of goods cause the total cost is so swell. So the company needs a recommendation for the location pf the warehouse for storage of goods for distribution needs with the optimal location and minimum total cost. The Gravity Location Model Method is used to determine the location that will be the link between the supply source and the location of the relates facilities. This model considers the assumptions that the cost will increase according to the volume move and the determination of the x,y coordinates as a determinant of location. The result if this study states that the most optimal coordinates for the new warehouse facility location are at (0,5;1,9) with the total cost Rp.886.611. With this result, the company gets a recommendation for the most optimal warehouse facility location to meets the needs of goods in each branch office.


Key Words : supply chain management, distribution, Gravity Location Model