Determining the Optimal Distribution Center Location using Center of Gravity Approach for Fishery Logistics: A Case in Southern part of East Java


Authors : Abdul Ghofur Ragil Insani; R.O. Saut Gurning; Niniet Indah Arvitrida

Volume/Issue : Volume 5 - 2020, Issue 11 - November

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/2V79aOe

Main commodities of Capture Fisheries in the Southern Region of East Java are Tuna, Tongkol and Skipjack (TTS). To enter the export market, several strategic matters need to be considered, including product commodities, competitiveness, and product quality. Therefore, a study of the conditions, situations and distribution patterns in the Southern Region of East Java is needed to obtain results that are in accordance with the characteristics of the Southern Region of East Java. In this study, an analytical study was carried out using cost optimization calculations and determining the location of the Distribution Center (DC) using the Center of Gravity (CoG). As well, it takes a modern and DC mode of transportation to overcome these conditions. There are 3 (three) distribution alternatives, namely the first alternative is direct delivery using a Colt Diesel Double (CDD) with a total shipping cost of Rp. 50.19 Billion, the second alternative is inbound delivery using the CDD transportation mode and in outbound using the CDD reefer with a total shipping cost of Rp. 60.64 Billion and the third alternative is direct delivery using CDD reefer with a total shipping cost of Rp. 83.46 Billion. The design of a new distribution pattern certainly changes the existing distribution flow by adding DC facilities.

Keywords : Southern Region of East Java, TTS, DC, CoG

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