Track: Supply Chain Management

Abstract

The carton box industry contributes to the second largest market share (28%) in Indonesia (Indonesian Packaging Assosiation et al., 2019). Strategies in maintaining service level commitment to customers are not only from the aspect of timeliness, quality, and quantity but from the aspect of minimum transportation costs. The purpose of this research is to minimize transportation costs by determining the appropriate location of the Distribution Center (DC) using Center of Gravity (COG), Analytical Hierarchy Process (AHP) and Transportation Saving Matrix method. Calculation of the COG method obtained the DC location at the coordinate point: X:-6.314311 and Y:106.986493 located at the Bantar Gebang Market Bekasi. The AHP method selected as the DC location was location A with a weight of 0.3551, followed by location B with a weight of 0.3240, and finally location C with a weight of 0.3210. Transportation Saving Matrix method showed transportation costs was  location A with a nominal value of 473.21 (K USD), location C with a nominal value of 509.17 (K USD), and location B with a nominal value of 518.96 (K USD). The conclusion that the appropriate location A (selected DC) obtained minimum transportation costs.