Determining The Location Point of Aggregation Warehouse for Salt Supply Chain

Abstract

This paper determines the location of salt farmer aggregation warehouses to reduce the cost of salt supply chain in Sumenep District. The annual salt production of each salt farmer is diverse and spatially distributed. With supply chain management strategies, salt farmers venture must have a salt collecting warehouse as an aggregator in the supply chain network. This warehouse collects the salt production of its group members, before goes to the salt processing plant. Using the Center of Gravity method, the location of the salt collection warehouse is placed at the center of the mass based on the tonnage of the salt production of the group members. There are 155 salt farmer ventures in Sumenep Regency. Within three scenarios of transporting salt using trucks of 20 tons, 7 tons, and 1.5 tons capacity, minimum transportation cost of Ill,320,191,799. IDR is obtained with the 20 ton truck transport mode from the collecting point at latitude -7.06709, longitude 113. SS116, Pinggir Papas Village, Sub-District of Kalianget, Sumenep District, East Java.