Determination of the optimal distribution centre location with gravity location model

Abstract

Distribution cost for an animal feed company in Deli Serdang is relatively difficult to reduce because the location of the distribution centre is not strategic and far from several distribution locations. The purpose of this research is to determine the optimal distribution centre location to reduce distribution costs. In determining the proposed distribution centre location, Gravity Location Model is used. The research results are the new coordinates as the proposed distribution centre location, namely (98.888504; 3.419406) and the total distribution costs of initial distribution centre location are Rp 7.135.828, while the total distribution cost of proposed distribution centre location is Rp 6.965.143. The results obtained show that the total distribution costs can be reduced by 2.39% per day.