ABSTRACT
Delivery and logistic company is one of the businesses that include in supply chain management business. There is one of companies located in Indonesia that run in that field of business. One of cities that has the highest demand in West Java is Bandung with 50% of total demand at the province. Bandung itself already has 13 delivery center in Bandung Raya, including Bandung City, Bandung Regency, West Bandung Regency, and Cimahi City. However, there are still unfulfilled demands that cause loss cost for the company because the distance between delivery center to customer is too far. Therefore, the company is willing to add one more delivery center in Bandung Raya but outside Bandung City. Gravity Model is used to determine the potential location of facility in Soreang, Dayeuhkolot, and Ujung Berung. After the potential locations are determined, Mixed Integer Linear Programming is used for choose one of the potential locations to be one location that has least cost between the three.
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Index Terms
- Site Selection of New Facility Using Gravity Model and Mixed Integer Linear Programming in Delivery and Logistic Company
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