Proposal for Determining Sub-Warehouse Location Using the Gravity Location Model at PT XYZ

Usulan Penentuan Sub Gudang Menggunakan Metode Garvity Loccation Model pada PT. XYZ

Abstrak

PT XYZ is a company engaged in the distribution and marketing of fuel products. Its distribution and marketing locations are spread across Central Java and Yogyakarta. One of PT XYZ's new services is opening a certain scale sales outlet that is prepared to serve villages that need product services from PT XYZ. This service was launched in 2020 to serve fuel needs in villages. Until now, there are 270 official sales outlets from PT XYZ. Distribution efficiency is very important to maintain the availability of fuel so that a sub-warehouse needs to be established for fuel storage. Previously, PT XYZ had established a sub-warehouse in Demak City but it was closed because it was considered inefficient. The closure of the sub-warehouse was carried out because the shipping costs from the sub-warehouse were higher than shipping from PT XYZ. Currently, shipping is done directly from PT XYZ. This study aims to determine the optimal location of the sub-warehouse using the Gravity Location Model method by considering distance, distribution costs, and number of outlets. The results show that the optimal location is in Gang 7, Puri, Pati, Central Java.